Intermediate Accounting 1

Predictive Value

Information is useful in predicting the future
Relevance

Pertinent to the decision at hand
Timliness

Information is available prior to the decision
Distribution to owners

Decrease in equity resulting from transfers to owners
Conformity value

Implies consensus among different measures
Understandability

Users understand the information in the context of the decision being made
Gain

Results if an asset is sold for more than its book value
Faithful Representation

Agreement between a measure and the phenomenon it purports to represent
Comprehensive income

The change in equity from nonowner transactions
Materiality

Concerns the relative size of an item and it's effect on decisions
Comparability

Important for making interfirm comparisons
Neutrality

the absence of bias
Recognition

The process of admitting information into financial statements
Consistency

Applying the same accounting practices over time
Cost Effectiveness

Requires consideration of the costs and value of information
Verifiability

Implies consensus among different users

Author

sjfasone

197960

Card Set

Intermediate Accounting 1

Description

Intermediate Accounting 1 terms and concepts

Updated

2013-02-05T00:45:32Z

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