20A2 - Intermediate Acc - Env. & Theoretical Structure of FA

The objective of financial reporting places most emphasis on:

• reporting to capital providers.

• reporting on stewardship.

• providing specific guidance related to specific needs.

• providing information to individuals who are experts in the field.

What is the following is a characteristic describing the primary quality of relevance?

• Predictive value.

• Materiality.

• Verifiability.

• Understandability.

Which of the following is an ingredient of faithful representation?

• Predictive value.

• Materiality.

• Neutrality.

• Confirmatory value.

Which of the following is an implication of the going concern assumption?

• The historical cost principle is credible.

• Depreciation and amortization policies are justifiable and appropriate.

• The current-noncurrent classification of assets and liabilities is justifiable and significant.

• All of these.

The elements of financial statements which relate to financial position are assets, .......... and equity.