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Posted: June 15th, 2022
Kaplan University AC 300 Identify the appropriate qualitative characteristic(s) to be used for
Train 2-4Identify the appropriate qualitative attribute(s) to be used for given the info providedbelow.(a)(b)(c)(d)(e)(f)Qualitativecharacteristic beingemployedwhencompaniesin thesameindustryare usingthe sameaccountingprinciples.High quality ofinformation thatconfirmsusersâearlierexpectations.Imperativeforprovidingcomparisons of acompanyfromperiod toperiod.Ignorestheeconomicconsequences of astandardor rule.Requires ahighdegree ofconsensusamongindividualson a givenmeasurement.Predictivevalue is aningredientof thisfundamental qualityofinformation.(g)(h)(i)(j)(okay)Arisesfromperipheral orFourqualitativecharacteristics thatarerelated tobothrelevanceandfaithfulrepresentation.An merchandise isnotrecordedbecauseits effecton incomewould notchange adecision.Neutralityis aningredientof thisfundamental qualityofaccountinginformation.Twofundamentalqualitiesthat makeaccountinginformation usefulfordecisionmakingpurposes.Issuanceof interimreports isanexampleof whatenhancingquality ofrelevance?incidentaltransactions.(b)Obligation to switch resourcesarising from a previous transaction.(c)Will increase possession curiosity.(d)Declares and pays money dividendsto house owners.(e)Will increase in internet belongings in a periodfrom nonowner sources.(f)Gadgets characterised by servicepotential or future economicbenefit.Equals enhance in belongings lessliabilities throughout the yr, afteradding distributions to house owners andsubtracting investments byowners.Arises from earnings statementactivities that represent theentityâs ongoing main or centraloperations.Residual curiosity in the belongings ofthe enterprise after deducting itsliabilities.Will increase belongings throughout a periodthrough sale of product.(g)(h)(i)(j)(okay)(l)Decreases belongings throughout the periodby buying the companyâs ownstock.Consists of all modifications in equityduring the interval, besides thoseresulting from investments byowners and distributions to house owners.
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