Acc 349 Week 2 Individual Assignments

Individual Assignment: Ch. 2 & 3 Textbook ExercisesJanea' JacksonACC/421Laurence LanderDecember 18, 2011E2-2(a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Verifiability(b) Quality of information that confirms users’ earlier expectations. Feedback Value(c) Imperative for providing comparisons of a company from period to period. Consistency(d) Ignores the economic consequences of a standard or rule. Neutrality(e) Requires a high degree of consensus among individuals on a given measurement. Representational Faithfulness(f) Predictive value is an ingredient of this primary quality of information. Relevance(g) Two qualitative characteristics that are related to both relevance and reliability. Comparability, Consistency(h) Neutrality is an ingredient of this primary quality of accounting information. Reliability(i) Two primary qualities that make accounting information useful for decision-making purposes. Relevance, Reliability(j) Issuance of interim reports is an example of what primary ingredient of relevance? TimelinessE2-4(a) Allocates expenses to revenues in the proper period. 6 (Matching Principle)(b) Indicates that market value changes subsequent to purchase are not recorded in the accounts. (Do not use revenue recognition principle.) 5 (Historical Cost Principle)(c) Ensures that all relevant financial information is reported.