Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. for each of the following scenarios, determine whi

For each of the following scenarios, determine which characteristic of quality information is missing. In...

70.2K

Verified Solution

Question

Accounting

For each of the following scenarios, determine which characteristic of quality information is missing. In addition, determine whether or not the information would still be considered useful according to Phase A of the Conceptual Framework project.

1. When performing its analysis for impairment, Hill Entitys CFO took an overly aggressive and unreasonably optimistic position and thus avoided a major impairment loss on the books.

Neutrality

2. Without notifying users of the financial statements, Ifond Entity chose to report its cost of goods sold using the FIFO method for the current year, although it used the LIFO method in the previous year. The numbers for the previous year were not updated to reflect the change.

Completeness

3. In its financial statements, Jarid Entity provides information about its machinery. This information cannot be used to predict future outcomes or confirm previous evaluations, but Jarid Entity believes it will help users of the financial statements better understand its operations.

Relevance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students