Question 1

Match between columns
                        Premises: The company signs a contract to produce four machines according to the customer's specifications. On the date of the contract, the customer pays one half of the total contract price, and the company records the cash receipt as a sale. The machines will be manufactured and delivered during the next year.
The company delayed issuing its annual financial statements in order to include a large sale expected early in the next year.
The market value of the company's inventory declined sharply. The president,optimistically predicting a rise in value, insisted that the inventory be reported at its historical cost.
The market value of the company's large inventory rose sharply. The inventory was reported on the balance sheet at current market value.
Although the company can estimate its uncollectible accounts receivable, it does not recognize the bad debts expense until it determines that an account receivable is uncollectible.

Accepted Answer

The Answer of full disclosure and historical cost and revenue is...

Question 2

Match between columns
                        Premises: When information can make a difference in a decision.
Making information available when it is needed.
When accounting policies and procedures are unchanged from period to period.
When information is verifiable and neutral.
Occurs when the measurement results can be duplicated.
The overall qualitative characteristic accounting information should possess.
When information enables decision makers to confirm prior expectations.
When accounting information is reported the same way by different companies.
Accounting information should help users form expectations about the future.
Does not give the appearance of biased information.
The information must be complete and free from errors

Accepted Answer

The Answer of feedback value and relevance and decision usefulness is...

Question 3

Match between columns
                        Premises: The uncertainty of the future profitability of a company
The ability of a company to use its financial resources to adapt to change.
The ability of a company to efficiently produce goods and services for customers.
Refers to how quickly a company can convert assets into cash.
A measure of overall company performance for equity shareholders.
Comes from a company's ability to raise new capital.
Caused by factors such as technological, political, and economic change.
Indicated by the productive capacity of long-lived assets.
 Negatively related to risk.

Accepted Answer

The Answer of Liquidity and Operating capability and Risk and is...

Quiz 2: Financial Reporting: Its Conceptual Framework

Indicate which item (or items) on the list was (were) violated in each description by placing the appropriate letter(s) in the space provided.

Match each characteristic with the appropriate phrase

Match each type of information with the appropriate statement by placing the appropriate letter in the space provided