The Accounting Convention That Justifies the Omission of Insignificant Information

question 159

Short Answer

The accounting convention that justifies the omission of insignificant information when its omission or misstatement would not mislead a user of the financial statements

Identify and describe various mining techniques and their specific applications.

Explain the formation processes and characteristics of different types of rocks.

Understand the equipment and scales used to measure natural environmental phenomena, such as earthquakes.

Describe the Earth's structural composition and the characteristics of each layer.

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Definitions:

Fair Value

The estimated price at which an asset would change hands between a willing buyer and seller, not under compulsion and with reasonable knowledge of the relevant facts.

Mortgage

A loan secured by real property, typically used to purchase that property.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus accumulated depreciation.

Fair Value

The estimated price at which an asset or liability could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.