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:

Thoughts

refer to mental processes involving reasoning, planning, problem-solving, and abstract thinking, occurring within the mind.

Feelings

Emotional experiences or responses to stimuli, varying in intensity and type.

Behavioral Component

An aspect of an attitude that reflects the intention to behave in a certain way toward someone or something.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, energy usage, and air and water pollution.