A List of Statements Follows

question 43

Short Answer

A list of statements follows:
a. GAAP states that the two primary qualitative characteristics that make accounting information useful for decision-making purposes are________ and____________.
b. Corporations prepare quarterly financial statements in order to help achieve
______, an ingredient of the primary quality of relevance.
c. Expensing the purchase of waste paper baskets that have a three-year estimated useful life at the date of acquisition is a permissible procedure according to the______________ constraint.
d. The three components of relevance are ____,___________, and _____.
e. is the overall qualitative______characteristic to be used in judging the quality of accounting information.
Required:
Fill in the words necessary to complete the statements.

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Definitions:

Accounting Policy

Distinctive postulates, grounds, methodologies, commands, and actions taken by an institution for the structuring and broadcasting of financial summaries.

Past Event

An occurrence that has taken place in the past and is relevant to the accounting and financial statements of an entity.

Recognition

The process of incorporating an item into the financial statements of an entity, including measuring its value.

Positive Theories

Theories that attempt to explain how things are in the world of finance and accounting, based on empirical evidence and facts.