This question consists of ten items that represent descriptions or definitions of the various elements of the fasb's statements of financial accounting concepts.
select the best answer for each item from the terms provided. a term may be used once, more than once, or not at all.
a. recognition
b. comprehensive income
c. faithful representation
d. revenues
e. predictive value
f. comparability
g. gains
h. net income
i. earnings
j. realization
k. replacement cost
l. market value
concept statement definitions:
1. component of relevance.
2. increases in net assets from incidental or peripheral transactions affecting an entity.
3. the process of converting noncash resources and rights into cash or claims to cash.
4. enhancing qualitative characteristic of relevance and faithful representation.
5. the process of formally recording an item in the financial statements of an entity after it has met existing criteria and been subject to cost-benefit constraints and materiality thresholds.
6. all changes in net assets of an entity during a period except those resulting from investments by owners and distributions to owners.
7. inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing operations.
8. the amount of cash, or its equivalent, that could be obtained by selling an asset in orderly liquidation.
9. the quality of information that users to increase the likelihood of correctly forecasting the outcome of past or present events.
10. a performance measure concerned primarily with cash-to- cash cycles.