The Conceptual Framework States That an Important Implication of the Qualitative

question 21

Multiple Choice

The Conceptual Framework states that an important implication of the qualitative characteristic of comparability is that:

• A)It will be used to predict outcomes of past,present or future events
• B)It will be used to assess the representational faithfulness of the financial reports
• C)Users will be informed of the accounting policies used in the preparation of the financial reports
• D)If there is a choice of accounting methods one method should be chosen and then applied throughout the life of the entity

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Definitions:

Encoding Specificity Effect

The principle stating that the recall of information is higher if the cues present at the time of encoding are also present at the time of retrieval.

TOT Effect

Refers to the "Tip of the Tongue" phenomenon where a person cannot recall a specific word or term but has a partial recall or feels that the recall is imminent.

Recognition

The cognitive process of identifying and acknowledging the familiarity of an object, concept, or piece of information from previous encounters.

Recall

The act of retrieving information or memories from one's past, a cognitive process within the broader memory system.