Qualitative Characteristics & Accounting Assumptions 2

Which qualitative characteristic ensures that financial information is related to an economic decision?

• Relevance

• Faithful representation

• Comparability

• Verifiability

• Timeliness

Which qualitative characteristic ensures that financial information is an accurate depiction of the real-world economic event it represents?

•  Relevance

• Faithful representation

• Comparability

• Verifiability

• Timeliness

Which qualitative characteristic enables users to identify and understand similarities and differences among items?

• Relevance

• Faithful representation

• Comparability

• Verifiability

Which qualitative characteristic ensures that different observers can reach a consensus that a particular depiction of an event is faithfully represented?

• Faithful representation

• Comparability

• Verifiability

• Timeliness

Which qualitative characteristic ensures that financial information is available to decision-makers in time to influence their decisions?

• Comparability

• Relevance

• Timeliness

• Understandability

Which qualitative characteristic requires financial information to be comprehensible to users with reasonable knowledge of business and economic activities?

• Understandability

• Verifiability

• Faithful representation

• Timeliness

Which accounting assumption ensures that the records of assets, liabilities and business activities of the entity are kept completely separate from those of the owner of the entity as well as from those of other entities?

• The accounting entity assumption

• The accrual basis assumption

• The going concern assumption

• The period assumption

Which accounting assumption recognises revenue when it is earned and expenses when they are incurred?

• The accounting entity assumption

• The accrual basis assumption

• The going concern assumption

• The period assumption

Which accounting assumption assumes that the existing entity will continue to operate into the future?

• The accounting entity assumption

• The accrual basis assumption

• The going concern assumption

• The period assumption

Which accounting assumption involves the process of recognising revenue and deducting expenses for a particular period of time?

• The accounting entity assumption

• The accrual basis assumption

• The going concern assumption

• The period assumption