Review questions of Week 3

The purpose of ____ is to ensure that the financial statement user is provided with financial information that does not have any significant omissions/misstatements.

• full-disclosure principle

• materiality principle

• relevant principle

• understanability principle

A ____ refers to a party involving an individual, institution, or the government that extends credit or lends goods, property, services, or money to another party.

• debtor

• creditor

Which of the following forms of business organizations have owners with limited liability?

• Corporation

• General partnership

• Sole proprietorship

The primary users of accounting information are _____and creditors.

______involves the recording, on a regular basis, of a company’s financial transactions and events.

_____is a method of recording accounting transactions for revenue when earned and expenses when incurred.

• Cash basis

• Going concern

• Accrual basis

• IASB

What is the full name of "IASB"?

Which one is the very fundamental principles of accounting that assumes the entity will continue to remain in business for the foreseeable future.

• Relevance

• Going concern

• Comparability

• Verifiability