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PART (I) 60Points)

State the accounting assumption, principles, information characteristics, constraints or accounting concept that most applicable to the following cases. The following list may help ::

Relevancy , Periodicity , faithful representation , materiality, timeliness , completeness, understandability, comparability, Consistency, consistency, verifiability , free from error , Neutrality, Free of Errors, predictive value, confirmatory value , Historical Cost Principle , Fair Value Option, Revenue recognition Principle, Expenses recognition principle, Full Disclosure Principle, Realization, Recognition, Asset, Liabilities , Revenue, Expenses, Loss., Gain., Cost Benefit constrain, Materiality, Industry practice, Conservatism, ,Accrual Basis Assum. , Economic Unit Assumption. Monetary unit assumption, Going Concern Assumption, Periodicity Assumption.

1. Indicate when in doubt choose the solution that will be least likely to overstate assets and net income?
2. The economic activities of an enterprise can be divided into artificial time periods.
3. Number and description in the financial statement reflect fairly what happened & what exist. .
4. Establishing an allowance account for uncollectible is an application of .Principle
5. .Permit reporting asset or liabilities at fair value under IAS.
6. .Under FASB provide justification for violation of HC principle when reporting financial assets & financial liabilities at fair value by Brokerage firms
7. The quality of information that enable users to confirm or correct prior expectation.
8. -Having information available to users before it loses its capacity to influence decisions.
9. Principle that requires the disclosure of Information that is capable of making a difference in the decision of users in their capacity as a capital providers.
10. -Nader company switches from FIFO to Average cost and then back to FIFO over 2-year period, which qualitative characteristic of accounting information is not followed?
11. .Quality of information that allows users to comprehend its meaning.
12. Using the same depreciation method used by other companies in the industry.
13. Personal transaction of the owner is separated from business transaction.
14. .Decrease in equity resulted from regular operating activities.
15. ..is the process of formally incorporating the item in the financial statement.
16. ..is the process of converting product or services into cash or cash claim.
17. ..Assumption justify classification of assets & liabilities into current and non-Current.
18. Which primary quality enable financial information to make difference in decision making?
19. ..State that Business transaction measured and reported using unified monetary Unit.

One of the implication of the .concept on financial reporting process is that certain accounting rule need not to be followed

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