《会计专业英语》习题答案人大版chapter 2.docxVIP

Chapter 2 Financial Accounting and the Conceptual Framework Multiple Choice Questions D 2. B 3. D 4. B 5. A 6. D 7. A 8. C 9. B 10. B 11. C Discussion Questions What is the primary objective of financial reporting? The objective of financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions about providing resources to the entity. These decisions involve buying, selling, or holding equity and debt instruments, and providing or settling loans and other forms of credit. General-purpose financial reporting helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information provided in financial reports. Briefly describe the two fundamental qualities of useful accounting information. (You may choose two of the following qualities of useful accounting information to describe) The fundamental qualities of useful accounting information include reliability (faithful representation), relevance, comparability, consistency, timeliness, and understandability. Specially, (1) Reliability means that the numbers and descriptions match what really existed or happened. To be reliable, information must be complete, neutral, and free of material error. Reliability is a necessity, because most users have neither the time nor the expertise to evaluate the actual content of the information. (2) Relevance. To be relevant, accounting information must be capable of making a difference in a decision. Relevant information helps users predict the ultimate outcome of past, present, and future events. (3) Comparability. Information that is measured and reported in a similar manner for different companies is considered comparable. Comparability enables users to identify the real similarities and differences in economic events between companies and between time periods. (4) Consist