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Account

In: Business and Management

Submitted By princewilliam912
Words 282
Pages 2
Name: Prince Oweizide
Course: intermediate accounting
Chapter two
2-1

(a) True.
(b) False – General-purpose financial reports helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information in financial reports.
(c) False – Standard-setting that is based on personal conceptual frame works will lead to different conclusions about identical or similar issues. As a result, standards will not be consistent with one another, and past decisions may not be indicative of future ones.
(d) False – Information that is decision-useful to capital providers may also be useful to users of financial reporting who are not capital providers.
(e) False – An implicit assumption is that users need reasonable knowl edge of business and financial accounting matters to understand the information contained in the financial statements.
(f) True.

2-4

(a)(b)(c) | Comparability.Confirmatory Value.Comparability (Consistency.) | (h) (i) | Materiality.Relevance and Faithful representation. | (d)(e) | Neutrality.Verifiability. | (j) | Relevance and Faithful representation. | (f) | Relevance. | (k) | Timeliness | (g) | Comparability, Verifiability, Timeliness, and Understandability.
2-5 (a) Gains, losses.(b) Liabilities.(c) Investments by owners, comprehensive income.(Also possible would be revenues and gains).(d) Distributions to owners. (Note to instructor: net effect is to reduce equity and assets).(e) Comprehensive income (also possible would be revenues and gains).(f) Assets.(g) Comprehensive income.(h) Revenues, expenses.(i) Equity.(j) Revenues.(k) Distributions to owners.(l) Comprehensive income.2-6 (a) | 7. | Expense recognition principle. | (b) | 5. | Measurement (historical cost principle.) | (c) | 8. | Full disclosure principle. | (d) | 2. | Going concern

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