Listed below are nine terms and definitions associated with the FASB’s conceptual framework. Terms Definitions 1. Completeness a. Requires the consideration of the costs and value of information. 2. Comparability b. Ability to make comparisons between firms. 3. Neutrality c. Comprehending the meaning of accounting information. 4. Understandability d. Including all information necessary to report the business activity. 5. Cost effectiveness e. The business will last indefinitely unless there is evidence otherwise. 6. Verifiability f. Recording transactions only for the company. 7. Decision g. Implies consensus among different measures. 8. Economic entity assumption h. Accounting should be useful in making decisions. 9. Going concern assumption i. Accounting information should not favor a particular group. Required:Pair each term with its related definition.
Listed below are nine terms and definitions associated with the FASB’s conceptual framework. Terms Definitions 1. Completeness a. Requires the consideration of the costs and value of information. 2. Comparability b. Ability to make comparisons between firms. 3. Neutrality c. Comprehending the meaning of accounting information. 4. Understandability d. Including all information necessary to report the business activity. 5. Cost effectiveness e. The business will last indefinitely unless there is evidence otherwise. 6. Verifiability f. Recording transactions only for the company. 7. Decision g. Implies consensus among different measures. 8. Economic entity assumption h. Accounting should be useful in making decisions. 9. Going concern assumption i. Accounting information should not favor a particular group. Required:Pair each term with its related definition.
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 14MC: An important goal of a responsibility accounting framework is to help ensure which of the following?...
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Listed below are nine terms and definitions associated with the FASB’s conceptual framework.
Terms | Definitions |
1. Completeness | a. Requires the consideration of the costs and value of information. |
2. Comparability | b. Ability to make comparisons between firms. |
3. Neutrality | c. Comprehending the meaning of accounting information. |
4. Understandability | d. Including all information necessary to report the business activity. |
5. Cost effectiveness | e. The business will last indefinitely unless there is evidence otherwise. |
6. Verifiability | f. Recording transactions only for the company. |
7. Decision | g. Implies consensus among different measures. |
8. Economic entity assumption | h. Accounting should be useful in making decisions. |
9. Going concern assumption | i. Accounting information should not favor a particular group. |
Required:
Pair each term with its related definition.
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