1.Describe the components of internal control.
3.The lettered item below represent a classification scheme for the concepts of
financial accounting. Match each numbered term with the letter of the category
in which it belongs.
(c)Objectives of accounting information
(1) Wong Computer decides that expenditures for equipments of less than
$10,000 shoud be charges as expenses rather than recorded as long-term
assets and depreciated.
(2) If the market value of short-term investments falls below the cost, the
deduction in value would be recorded as an unrealized loss on short-term
investment price decline.
(3) Explanatory notes are considered an integral part of the financial statements
provided by the company.
(4) If Titanic Company decides to change its method of accounting for
inventories, Titanic will have to disclose the change and its dollar effect on net
(5) The information can make a difference in the outcome of a decision.
(6) The most important qualitative characteristics guide the reporting of
(7) Accounting should convey business activity as faithfully as possibile
without influencing anyone in a specific direction.
(8) Furnishing information about business resources, claima to these
resources, and changes in them.
- 老古Lv 71 decade agoFavorite Answer
1. The components of internal control.
**The Control Environment
**Information and Communication
A type of financial reporting in which a firm discloses information by identifiable industry segments. For example, Procter & Gamble reports revenues, income, assets, depreciation, and capital expenditures for each of three segments: beauty and health, household products, and Gillette. Segment reporting is required by the SEC as part of its attempt to provide stockholders and the public with better financial data. Also called line-of-business reporting.
An accounting technique used by firms to assess the profits earned by their investments in other companies. The firm reports the income earned on the investment on its income statement and the reported value is based on the firm's share of the company assets. The reported profit is proportional to the size of the equity investment. This is the standard technique used when one company has significant influence over another.
(3) (b)Full disclosure充分揭露原則
(7) ??? (k)Faithful representation
(8) ???(c)Objectives of accounting information
2010-07-08 17:39:59 補充：
2010-07-08 17:44:45 補充：
2010-07-08 17:56:53 補充：
The four main qualitative characteristics of financial statements are:
i) Understandability ( h)
2010-07-08 18:12:57 補充：
(7) (k)Faithful representation
(8)(c)Objectives of accounting informationSource(s): , http://www.license.com.tw/lawyer/exam/License/90-j... http://www.helium.com/items/1758567-qualitative-ch... http://books.google.com.tw/books?id=S35oOCeqB34C&p...