ACCT 303 - Conceptual Framework
About this set
Created by:
mddifilippo on October 5, 2010
Log in to favorite or report as inappropriate.
Order by
16 terms
Terms | Definitions |
|---|---|
 Predictive Value | information is useful in predicting the future |
| relevance | pertinent to the decision at hand |
| timeliness | information is available prior to the decision |
| distribution to owners | decreases in equity resulting from transfers to owners |
| feedback value | information confirms expectations |
| reliability | along with relevance, a primary decision-specific quality |
| gain | results if an asset is sold for more than its book value |
| representational faithfulness | agreement between a measure and the phenomenon it purports to represent |
| comprehensive income | the change in equity from non-owner transactions |
| materiality | concerns the relative size of an item and its effect on decisions |
| comparability | important for making inter-firm comparisons |
| neutrality | accounting information should not favor a particular group |
| recognition | the process of admitting information into financial statements |
| consistency | apply the same accounting practices over time |
| cost effectiveness | requires consideration of the costs and value of information |
| verifiability | implies consensus among different measures |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.