Which level of the conceptual framework is devoted to recognition and measurement concepts
1 Show Generally accepted accounting principles C. 2 In the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting? D. 3 Enhancing qualities include all of the following except 4 In order to be relevant, financial information must have all of the following ingredients of fundamental qualities except 5 A decrease in net assets arising from peripheral or incidental transactions is called a(n) 6 Under current GAAP, inflation is ignored in accounting due to the C.
7 Revenue is generally recognized when realized or realizable and earned. This statement describes the C. 8 Which of the following statements concerning the cost-benefit relationship is not true? D. 9 Which of the following is/are not true concerning a conceptual framework in accounting? C. 10 Which level of the conceptual framework is devoted to recognition and measurement concepts? 11 The underlying theme of the conceptual framework is 12 Accounting information is considered to be relevant when it B. 13 One of the elements of financial statements is comprehensive income. As described in Statement of FinancialAccounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to 14 Preparation of consolidated financial statements when a parent-subsidiary relationship exists is an example of the A. 15 "When products (goods or
services), merchandise, or other assets are exchanged for cash or claims to cash" is a definition of 16 Expensing the cost of a wastebasket with an estimated useful life of 10 years as an expense of the period when purchased is an example of applying the 17 All of the following statements about the conceptual framework are correct except it: D. 18 The first level of the conceptual framework is the: B. 19 Which of the
following is an ingredient of the fundamental quality of faithful representation? 20 All of the following are ingredients of relevance except: 21 Enhancing qualities of accounting information include: A. 22 Which of the following statements about comprehensive income is incorrect? C. 23 Increases in equity from peripheral or incidental transactions of an entity are: 24 Depreciation and amortization policies are justifiable and appropriate because of the: B. 25 The assumption that implies that the economic activities of an enterprise can be divided into artificial time
periods is the: D. 26 Generally, revenue should be recognized: 27 Generally, expenses are recognized when the:
D. What are the levels of conceptual framework?The Conceptual Framework. Chapter 1 – The objective of general-purpose financial reporting. The purpose of the Framework is to: ... . Chapter 2 – Qualitative characteristics of useful financial information. ... . Chapter 3 – Financial statements and the reporting entity. ... . Chapter 4 – The elements of financial statements.. Which level of the conceptual framework is devoted to the why the purpose of accounting?The conceptual framework has the following 3 levels: First level: The objective of financial reporting, the “why” or purpose of accounting. Second level: The qualitative characteristics and the elements of financial statements, which form a bridge between the 1st and 3rd levels.
What is measurement in conceptual framework?Principle 1: The objective of measurement is to represent faithfully the most relevant information about the economic resources of the reporting entity, the claims against the entity, and how efficiently the entity's management and governing board have discharged their responsibilities to use the entity's resources.
How is recognition defined in the conceptual framework?4. The existing Conceptual Framework defines recognition as follows: Recognition is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the criteria for recognition set out in paragraph 4.38.
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