The Conceptual Framework States That an Important Implication of the Qualitative

question 24

Multiple Choice

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

• A) it will be used to assess the representational faithfulness of the financial reports.
• B) users will be informed of the accounting policies used in the preparation of the financial reports.
• C) it will be used to predict outcomes of past, present or future events.
• 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:

Fragile

Easily broken, damaged, or vulnerable to harm or failure under pressure or stress.

Lead Poisoning

A medical condition caused by the accumulation of lead in the body, which can damage various organ systems, particularly the nervous system, and is particularly harmful to children.

Verbal Processing

The mental technique of organizing and understanding information through the use of words and language.

Lower Intelligence

Described as below-average cognitive ability, including difficulties with problem-solving, learning, and adapting to new situations.