Which of the following statements is a description of the accounting concept of materiality?
A: Financial statements are prepared assuming the business will continue for the foreseeable future.
B: An item that is omitted or incorrect would affect users' decisions based on the financial statements.
C: Profits and income are recognised with caution, losses and expenses are recognised as soon as known.
D: The business and its owner are separate accounting entities.
A: Financial statements are prepared assuming the business will continue for the foreseeable future.
B: An item that is omitted or incorrect would affect users' decisions based on the financial statements.
C: Profits and income are recognised with caution, losses and expenses are recognised as soon as known.
D: The business and its owner are separate accounting entities.
举一反三
- Which of the following statement is true? Statement A: Financial statements are prepared on the basis of accounting principles. Statement B: Any changes in the accounting principles or method will affect the utility of the financial statements. ( ) A: A is true but not B B: B is true but not A C: Both are false D: Both are true
- 中国大学MOOC: The following statements relate to financial accounting or to cost and management accounting: (i) The main users of financial accounting information are external to an organisation. (ii) Cost accounting is part of financial accounting and establishes costs incurred by an organisation. (iii) Management accounting is used to aid planning, control and decision making. Which of the statements are correct?
- Which of the following is a limitation of analysis of financial statements? ( ) A: Based on accounting concepts B: Affected by personal bias C: To know the financial strength D: Lack of Qualitative Analysis
- The following statements relate to financial accounting or to cost and management accounting: (i) The main users of financial accounting information are external to an organisation. (ii) Cost accounting is part of financial accounting and establishes costs incurred by an organisation. (iii) Management accounting is used to aid planning, control and decision making. Which of the statements are correct? A: (i) and (ii) only B: (i) and (iii) only C: (ii) and (iii) only D: (i), (ii) and (iii)
- _____________principle requires accounting entries in the accounting records and the data reported on the financial statements are based on objective evidence .