Qualitative Characteristics
Fill in the Blank
General
100
What are two major qualitative characteristics?
understandability, relevance, reliability and comparability
100
Past performances are helpful for predicting the ______________
future of the business.
100
What does IFRS stand for?
International Financial Reporting Standards
200
Why is reliability important?
It is important for the reports to be reliable because people depend on the information to make key business decisions.
200
The basic principles are listed in a _________
Framework
200
Briefly explain what the International Financial Reporting Standards are?
The International Financial Reporting Standards are the standards in which all financial reports must follow.
300
Why is comparability important?
So trends in its financial position and performance can be acknowledged.
300
A piece of information can be viewed as relevant if it will effect ________________?
the economic decisions of users
300
When did the IFRS become effective?
January 1, 2011
400
What are the four major qualitative characteristics?
understandability, relevance, reliability and comparability
400
Underlying assumptions are the basic foundation that underlies _______________
generally accepted accounting principles
400
What are the five basic principles of financial reports?
(a) objective (b) assumptions underlying financial reports (c) qualitative characteristics (d) elements (e) recognition criteria
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