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Accounting Principles 7th Canadian Edition Volume 2 By Jerry – Test Bank
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Accounting Principles 7th Canadian Edition Volume 2 By Jerry – Test Bank

$40.00 Original price was: $40.00.$20.00Current price is: $20.00.

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Edition: 7th Edition

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Description

Accounting Principles 7th Canadian Edition Volume 2 By Jerry – Test Bank

Exercise 1
The CPA conceptual framework discusses the following:
Code:
A Objective of Financial Reporting
B Qualitative Characteristics of Accounting Information
C Elements of Financial Statements

Instructions
For each item below, indicate the area of the conceptual framework that pertains to that item by selecting the appropriate code.

Example:
C Asset (An asset is an element of financial statements.)
____ 1. Information that is helpful in assessing management’s performance
____ 2. Owners’ equity
____ 3. Timeliness
____ 4. Neutral
____ 5. Expense
____ 6. Confirmatory value
____ 7 Faithful representation
____ 8 Comparability-consistency
____ 9. Information that is useful in making resource allocation decisions
____ 10 Full disclosure principle

Solution 1 (5 min.)
1. A

2. C

3. B

4. B

5. C

6. B

7. B

8. B

9. A

10. B

Exercise 2
For each item below, indicate whether the item is (1) Fundamental Qualitative Characteristic, (2) Enhancing Qualitative Characteristic, (3) Element of the Financial Statements, (4) Concept, or (5) Constraint.

Example:
(3)_ Asset (An asset is an element of financial statements.)
____ a) Relevance
____ b) Comparability
____ c) Cost-Benefit
____ d) Timeliness
____ e) Revenue
____ f) Owner’s equity
____ g) Faithful representation
____ h) Going concern
____ i) Reporting entity
____ j) Monetary unit

Solution 2 (5 min.)
a) (1)

b) (2)

c) (5)

d) (2)

e) (3)

f) (3)

g) (1)

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