CFAS prelim huhu ang haba

          -            are the qualities or attribules that make financial accounting information useful to the users

the objective is to ensure that the information is useful to the users in making economic decisions

• Qualitative characteristics

• fundamental qualitative characteristics

• enhancing qualitative characteristics

          -            relate to the content or substance of financial information

• Qualitative characteristics

• fundamental qualitative characteristics

• enhancing qualitative characteristics

fundamental qualitative characteristics are

• relevance and faithful representation

• materiality and relativity

• completeness and neutrality

          -            is the capacity of the information to influence a decision

          -            the financial information must be capable of making a difference in the decisions made by users

          -            requires that the financial information should be related or pertinent to the economic decision

          -            to be useful, information must be relevant to the decision making needs of users

• materiality

• completeness

• relevance

ingredients of relevance

• sitaw at kalabasa

• predictive value and confirmatory value

• materiality value and relevance value

the book value per share information is more relevant than earnings per share in determining the attractiveness of an investment

• true

• false

Answer explanation

earnings per share is more relevant!

can be used as an input by users to predict future outcome; help users increase the likelihood of correctly or accurately predicting or forecasting outcome of events

• predictive value

• confirmatory value

it provides feedback about previous evaluations; enables users confirm or correct earlier expectations

• predictive value

• confirmatory value

          -            a practical rule in accounting which dictates that strict adherence to GAAP is not required when the items are not significant enough to affect the evaluation, decision and fairness of the financial statements

• relevance

• materiality

• accounting standards

          -            also known as the doctrine of convenience

• relevance

• materiality

• doctrina christiana