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7 Cards in this Set
- Front
- Back
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The fundamental qualitative characteristics of useful financial information are _____ and _____. |
1. Relevance and 2. Faithful representation |
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The present value of future cash flows is used to measure _____ or _____ |
1. Long-term receivables or 2. Payables |
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What are the 3 ingredients of faithful representation? |
1. Completeness 2. Neutrality 3. Freedom from error. |
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What are the 3 ingredients of relevance? |
1. Predictive value 2. Confirming value 3. Materiality |
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Realization is the process of |
Converting noncash resources and rights into money. |
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Recognition is the process of |
Recording an item in the financial statements of an entity |
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Revenues and gains are realized when assets are |
Exchanged for cash or claims to cash |
