Match the descriptions in Column B with the proper terms in Column A.
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Column A |
Column B |
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1. Financial reporting objectives. |
a. |
Information is free of measurement method bias. |
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2. Qualitative characteristics. |
b. |
The benefits exceed the costs. |
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3. Relevance. |
c. |
Relatively large items must be accounted for in a theoretically correct way. |
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4. Predictive value. |
d. |
The information can be substantially duplicated by independent measurers using the same measurement methods. |
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5. Feedback value. |
e. |
When information improves users” ability to predict outcomes of events. |
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6. Timeliness. |
f. |
Broad overriding goals sought by accountants engaging in financial reporting. |
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7. Reliability. |
g. |
When information is pertinent or bears on a decision. |
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8. Representational faithfulness. |
h. |
The characteristics that accounting information should possess to be useful in decision making. |
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9. Verifiability. |
i. |
Information that reveals the relative success of users in predicting outcomes. |
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10. Neutrality. |
j. |
When accounting statements on economic activity correspond to the actual underlying activity. |
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11. Comparability. |
k. |
When information is provided soon enough that it may be considered in |
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12. Consistency. |
l. |
When information faithfully depicts for users what it purports to represent. |
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13. Cost-benefit. |
m. |
Requires a company to use the same accounting principles and reporting practices through time. |
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14. Materiality. |
n. |
When reported differences and similarities in information are real and not |