Description

Test Bank for Intermediate Accounting, 11th Edition by David Spiceland, Mark Nelson, Wayne Thomas & Jennifer – Complete All Chapters with Correct Answers (Latest 2025 Updates) Information is useful in projecting cash flows. Pertinent to the decision at hand. Information is available prior to the decision. Decrease in equity due to transfers to owners. Information confirms expectations. 2. Relevance 3. Distribution to owners 4. Confirmatory value 5. Timeliness Term number that matches the phrase. 1 2 5 3 4 2) TERM 1. Gain 2. Materiality 3. Completeness 4. Comprehensive income Version 1 PHRASE Along with relevance, a fundamental decision-specific quality. Results if an asset is sold for more than book value. Contains all information necessary for faithful representation. The change in equity from nonowner transactions. Term number that matches the phrase. 5 1 3 4 1 5. Faithful representation Concerns the decision-making impact of both the amount and nature of an item. 2 PHRASE Term number that matches the phrase. 2 3) TERM 1. Neutrality 2. Comparability 3. Consistency 4. Cost-effectiveness 5. Recognition Important in analysis between firms. Accounting information should be unbiased. The decision to include an amount in the financial statements. Applying the same accounting practices over time. Considers the value of using information relative to cost of providing it. 1 5 3 4 4) TERM 1. Monetary unit assumption 2. Verifiability 3. Economic entity assumption 4. Going concern assumption 5. Periodicit Purchase document to see full attachment