The flashcards below were created by user
JoetheDowd
on FreezingBlue Flashcards.
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Predictive value
Results if an asset is sold for more than its book value.
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Relevance
Pertinent to the decision at hand.
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Timeliness
Information is available prior to the decision.
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Distribution to owners
Decreases in equity resulting from transfers to owners.
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Confirmatory value
information confirms expectations.
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Understandability
Users understand the information in the context of the decision being made.
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Gain
Results if an asset is sold for more than its book value.
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Faithful representation
Agreement between a measure and the phenomenon it purports to represent.
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Comprehensive income
The change in equity from nonowner transactions.
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Materiality
Concerns the relative size of an item and its effect on decisions.
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Comparability
Important for making interfirm comparisons.
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Neutrality
The absence of bias.
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Recognition
The process of admitting information into financial statements.
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Consistency
Applying the same accounting practices over time.
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Cost effectiveness
Requires consideration of the costs and value of information.
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Verifiability
Implies consensus among different measurers.
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