Identify whether the following investor questions are associated with (a) primary or (b) secondary financial reporting objectives. primary financial reporting objective secondary financial reporting objective How much has invested in research and development projects? b ANSWER: Based on the financial information, should I buy shares of Apple? a ANSWER: If I buy 50 shares of Apple, how much cash will I receive in dividends each year? b ANSWER: How much revenue will Apple generate during the time period in which I own the shares? b ANSWER: Based on the financial information, should I sell my shares of Apple next quarter? a ANSWER: Match the following characteristics with the statements about each qualitative characteristic’s importance. Consistency Materiality Conservatism Comparability Reliability Relevance Understandability Those willing to spend the time should be provided with comprehensible accounting information. g ANSWER: The accounting information must be information that affect a decision. f ANSWER: Accounting information should use the least optimistic estimate. c ANSWER: This quality allows to analyze two or more companies and look for similarities and differences. d ANSWER: Users must be able to compare accounting information of a firm with its prior year information. a ANSWER: Accounting information must be verifiable and faithfully represent actual transactions. e ANSWER:
Identify whether the following investor questions are associated with (a) primary or (b) secondary financial reporting objectives. primary financial reporting objective secondary financial reporting objective How much has invested in research and development projects? ANSWER: b Based on the financial information, should I buy shares of Apple? ANSWER: a If I buy 50 shares of Apple, how much cash will I receive in dividends each year? ANSWER: b How much revenue will Apple generate during the time period in which I own the shares? ANSWER: b Based on the financial information, should I sell my shares of Apple next quarter? ANSWER: a Match the following characteristics with the statements about each qualitative characteristic’s importance. Consistency Materiality Conservatism Comparability Reliability Relevance Understandability Those willing to spend the time should be provided with comprehensible accounting information. ANSWER: g The accounting information must be information that affect a decision. ANSWER: f Accounting information should use the least optimistic estimate. ANSWER: c This quality allows to analyze two or more companies and look for similarities and differences. ANSWER: d Users must be able to compare accounting information of a firm with its prior year information. ANSWER: a Accounting information must be verifiable and faithfully represent actual transactions. ANSWER: e
Downloadable-Test-Bank-for-Financial-Accounting-The-Impact-on-Decision-Makers-9th-Edition-Porter-1.docx