Select from the following list the qualitative characteristic of useful information that best describes each of the following items: 1. 2. 3. 4. 5. In order to keep the financial statements simple, Carlaw Consulting shows three items on its income statement: Revenue, Expenses and Net income. The financial statements of Belbach Industries are audited on an annual basis by public accountants. Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of the company's year-end financial statements to assist them in their investment decision. Chemical Reaction Inc. operates in both the US and Canada and restates its US financial statements according to Canadian GAAP for its Canadian investors. The Controller for Location Inc. emphasizes that factual and unbiased information prevails in the preparation of the company financial statements. ✓ Predictive value Confirmatory value Materiality Completeness Neutrality Freedom from error Verifiability Comparability
Select from the following list the qualitative characteristic of useful information that best describes each of the following items: 1. 2. 3. 4. 5. In order to keep the financial statements simple, Carlaw Consulting shows three items on its income statement: Revenue, Expenses and Net income. The financial statements of Belbach Industries are audited on an annual basis by public accountants. Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of the company's year-end financial statements to assist them in their investment decision. Chemical Reaction Inc. operates in both the US and Canada and restates its US financial statements according to Canadian GAAP for its Canadian investors. The Controller for Location Inc. emphasizes that factual and unbiased information prevails in the preparation of the company financial statements. ✓ Predictive value Confirmatory value Materiality Completeness Neutrality Freedom from error Verifiability Comparability
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 60P
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Question
![Select from the following list the qualitative characteristic of useful information that best describes each of the following items:
1.
2.
3.
4.
5.
In order to keep the financial statements simple, Carlaw Consulting shows three items on its
income statement: Revenue, Expenses and Net income.
The financial statements of Belbach Industries are audited on an annual basis by public
accountants.
Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of
the company's year-end financial statements to assist them in their investment decision.
Chemical Reaction Inc. operates in both the US and Canada and restates its US financial
statements according to Canadian GAAP for its Canadian investors.
The Controller for Location Inc. emphasizes that factual and unbiased information prevails in
the preparation of the company financial statements.
Predictive value
Confirmatory value
Materiality
Completeness
Neutrality
Freedom from error
Verifiability
Comparability
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6028f1f3-1b5b-4723-97fc-20da671ae235%2F60fbb8bf-b080-4ca8-9ee9-83914fa70eab%2Fnggw835_processed.png&w=3840&q=75)
Transcribed Image Text:Select from the following list the qualitative characteristic of useful information that best describes each of the following items:
1.
2.
3.
4.
5.
In order to keep the financial statements simple, Carlaw Consulting shows three items on its
income statement: Revenue, Expenses and Net income.
The financial statements of Belbach Industries are audited on an annual basis by public
accountants.
Rydell Corporation is contemplating an investment in Fryan Ltd. Rydell has requested a copy of
the company's year-end financial statements to assist them in their investment decision.
Chemical Reaction Inc. operates in both the US and Canada and restates its US financial
statements according to Canadian GAAP for its Canadian investors.
The Controller for Location Inc. emphasizes that factual and unbiased information prevails in
the preparation of the company financial statements.
Predictive value
Confirmatory value
Materiality
Completeness
Neutrality
Freedom from error
Verifiability
Comparability
2
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