Question

I am having trouble understanding the questions blank.

1. Conceptual Framework Matching: Full-Disclosure A. The long life of a company can be broken into a series of shorter time periods H Revenue B. The assumption that a company will continue to operate indefinitely. Periodicity Transactions of the business are separate from transactions of the owners. B Going Concern D. All relevant information should be provided to users. 6 E. Consensus among different measurers. Historical Cost Verifiability Small amounts unlikely to influence users. Immaterial Amounts G, Elements are recorded at their actual cash equivalent price C Economic Entity When goods or services are transferred to customers for the amount the company expects to be entitled to receive in exchange for those goods or services 2. The characteristic that states that information must be complete and free from error or biasis Reliability 3. Relevance has what three characteristics? 4. Give an example of a trade-off between relevance and faithful representation. - What is the difference between revenues/expenses and gains/losses? Accounting information should be both -- able to be compared between businesses, and --- able to be compared across time periods.

Answer 1

Answer-3)

1) Comparability: The accounting policies and standards should be consistently applied from one period to another to ensure an easy comparison.

2) Timeliness and Understand ability: The information need to be provided its users within a suitable timescale for their decision making purposes. Moreover the information must be understandable to those that who want to review and use.

3) Verifiability: The information can be verified to give assurance to the users that it is both reliable and credible

Answer-4) An example of trade-off between relevance and faithful representation would be needed in fulfilling the goal of general purpose financial reporting; thus under the general framework the relevance would be elevated above the faithful representation

Answer-5) Revenues and expenses are produced through the on-going central or major activities and operations in an enterprise’s process while gains/losses result from peripheral or incidental transactions of an enterprise with other entities and from other circumstances and events impacting it. The revenue and expenses are often reflected as the gross inflows or outflows of net assets, and on contrary the gains and losses are often reflected as net inflows or outflows.

Answer-6) comparable and consistent

Explanation: Accounting information should be both comparable and consistent i.e. can be compared with the other entities and; must be consistent on accounting regulations

As per policy we have to answer first question which is asked by student. I have answered more than it