FASB board members make standard-setting decisions guided by a conceptual framework that addresses the qualitative characteristics of accounting information. Which of the qualitative characteristics of accounting information holds that the information should represent what it is supposed to represent, in the sense that the information should correspond to the phenomenon being reported, and it
should be verifiable and free from bias?
a. Relevance
b. Reliability
c. Comparability.
d. Subjective
e. all of the above
B
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Practice occurs at which of the following levels?
a. Mental b. Physical and metaphysical c. Mental and physical d. Mental and metaphysical
When assessing performance, one way to compensate for differences among divisions of a multinational organization would be for the parent company to
a. use different target rates of return to compute residual incomes. b. modify the return on investment calculation so that foreign currency fluctuations are removed from all financial statement figures. c. classify all domestic divisions as investment centers and all foreign divisions as profit centers. d. use financial performance measures for units whose records are kept in the domestic currency and non-financial measures for units whose records are kept in a foreign currency.
According to one international advertising agency representative, "You can't show a goldfish in a goldfish bowl in Germany because of the national support of animal rights." The agency representative is referring to a(n) ________
A) collectivist norm B) individualist norm C) cultural value D) domestic barrier E) ethnocentric attitude
The theory of corporate citizenship contends that corporations owe a duty to promote the same social goals as individual members of society
Indicate whether the statement is true or false