Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas, Jennifer
Version 1bk 1
,Answer Key bk
Test name: chapter 1
bk bk bk bk
TERM PHRASE
Term number
bk k
b
that matches
bk k
b
the phrase.
bk
1. Predictive va lue
bk bk Information is useful in bk bk bk 1
projecting cash flows. bk bk
2. Relevance
bk Pertinent to the decision at bk bk bk bk 2
hand.
3. Distribution to
bk Information is available prior bk bk bk 5
owners to the decision.
bk bk
4. Confirmatory
bk Decrease in equity due tot
bk bk bk bk k
b 3
value ransfers to owners. bk bk
5. Timeliness
bk Information confirms bk 4
expectations.
2)
TERM PHRASE Term number bk k
b
that matches
bk
the phrase.
bk
1. Gain
bk Along with relevance, a
bk bk bk 5
fundamental decision- bk
specificquality. k
b
2. Materiality
bk Results if an asset is sold
bk bk bk bk bk for 1
more than book value.
bk bk bk
3. Completeness
bk Contains all information bk bk 3
necessary for faithful bk bk
representation.
4. Comprehensive
bk The change in equity from
bk bk bk bk 4
income nonowner transactions. bk
Version 1 bk 2
, 5. Faithful rep
bk bk Concerns the decision-making bk bk 2
resentation impact of both the amount andna
bk bk bk bk bk k
b
ture of an item.
bk bk bk
3)
TERM PHRASE
Term number
bk k
b
that matches
bk k
b
the phrase.
bk
1. Neutrality Important in analysis between bk bk bk 2
firms.
2. Comparability Accounting information should bk bk 1
be unbiased.
bk
3. Consistency The decision to include an
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amount in the financials
bk bk bk k
b
tatements.
4. Cost-effectiveness b k Applying the same accounting bk bk bk 3
practices over time. bk bk
5. Recognition Considers the value of using bk bk bk bk 4
information relative to cost ofp bk bk bk bk k
b
roviding it. bk
4)
TERM PHRASE
Term number bk k
b
that matches
bk k
b
the phrase.
bk
1. Monetary unit bk k
b Implies consensus among bk bk 2
assumption different observers. bk
2. Verifiability Assumes all transactions can be
bk bk bk bk 3
identified with a particulare bk bk bk k
b
ntity.
3. Economic entity bk k
b Assumes an entity will continue
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assumption to operate indefinitely.
bk bk
4. Going concern
bk k
b Requires reporting the bk bk 5
assumption financial life of an entity indi bk bk bk bk bk k
b
screte time frames.
bk bk
5. Periodicity k
b Ignores the possibility of
bk bk bk 1
assumption inflation.
5)
TERM PHRASE Term number bk
that matches
bk
Version 1 bk 3
, the phrase.
bk
1. Historical cost
bk Basis of measurement for fixed
bk bk bk bk 1
Version 1bk 4