Intermediate Accounting 1

  1. Predictive Value
    Information is useful in predicting the future
  2. Relevance
    Pertinent to the decision at hand
  3. Timliness
    Information is available prior to the decision
  4. Distribution to owners
    Decrease in equity resulting from transfers to owners
  5. Conformity value
    Implies consensus among different measures
  6. Understandability
    Users understand the information in the context of the decision being made
  7. Gain
    Results if an asset is sold for more than its book value
  8. Faithful Representation
    Agreement between a measure and the phenomenon it purports to represent
  9. Comprehensive income
    The change in equity from nonowner transactions
  10. Materiality
    Concerns the relative size of an item and it's effect on decisions
  11. Comparability
    Important for making interfirm comparisons
  12. Neutrality
    the absence of bias
  13. Recognition
    The process of admitting information into financial statements
  14. Consistency
    Applying the same accounting practices over time
  15. Cost Effectiveness
    Requires consideration of the costs and value of information
  16. Verifiability
    Implies consensus among different users
Card Set
Intermediate Accounting 1
Intermediate Accounting 1 terms and concepts