Basic Assumptions, Principles, and Terminology in the Conceptual Framework For each description, select the correct key term. Description Term a. Refers to whether or not a particular amount is large enough to affect a decision. Answer Verifiability
b. The activities of a business are considered to be independent and distinct from those of its owners or from other companies. Answer
c. Accounting information should enable users to identify similarities and differences between sets of economic phenomena. Answer
d. Financial reporting information must be available to decision makers before it loses its capacity to influence decisions. Answer
e. Information is useful if it has the ability to influence decisions. Answer
f. Consensus among measures assures that the information is free of error. Answer
g. Accounting information should reflect the underlying economic events that it purports to measure. Answer
h. The financial reports are presented in one consistent monetary unit, such as U. S. dollars. Answer
i. A business is expected to have continuity in that it is expected to continue to operate indefinitely. Answer
j. The life of a business can be divided into discrete accounting periods such as a year or quarter. Answer

a. Refers to whether or not a particular amount is large enough to affect a decision

Verifiability

b. The activities of a business are considered to be independent and distinct from those of its owners or from other companies. Answer

Reporting entity concept / Business entity concept

c. Accounting information should enable users to identify similarities and differences between sets of economic phenomena. Answer

Comparability (quality of information)

d. Financial reporting information must be available to decision makers before it loses its capacity to influence decisions.  

Timeliness

e. Information is useful if it has the ability to influence decisions. Answer

Relevance

f. Consensus among measures assures that the information is free of error. Answer

Verifiability

g. Accounting information should reflect the underlying economic events that it purports to measure.  

Representational Faithfulness

h. The financial reports are presented in one consistent monetary unit, such as U.S. dollars.  

Measuring Unit

i. A business is expected to have continuity in that it is expected to continue to operate indefinitely. Answer

Going Concern

j. The life of a business can be divided into discrete accounting periods such as a year or quarter.

Accounting Period

answer production department;