acct exam 1 questions & answers 2023/2024

acct exam 1 questions & answers 2023/2024 Relevance - ANSWER-can impact a decision maker's decision Predictive value - ANSWER-Help us predict future cash flows/net income materiality - ANSWER-omitting or mistaking it can affect decision makers decision Confirmatory value - ANSWER-Confirm prior expectations Faithful representation - ANSWER-agreement between measure of description of real world event and how it's reported. information is complete, neutral, and accurate Comparability - ANSWER-Users can see similarities and differences between companies Consistency - ANSWER-Same accounting practices applied throughout years within a firm Verifiability - ANSWER-information is consistent among different parties Timeliness - ANSWER-Information available to users early enough to help decision making Understandability - ANSWER-Users can comprehend information within the context of decision Cost-effectiveness - ANSWER-The benefits of providing the information must be greater than the cost of gathering information Revenue recognition principle - ANSWER-When do I recognize revenue?