CA > Foundation > Paper 1 – Flashcards
What do accounting principles guide?
Financial reporting
List a common accounting convention.
Conservatism
What characteristics must financial statements have?
Understandable, relevant, reliable
What is a key characteristic of materiality?
Full disclosure
How do qualitative characteristics affect decisions?
User decision-making
What do practical applications of principles translate into?
Financial statements
What helps assess financial performance?
Generally accepted methods
How can accounting conventions evolve?
Changing practices
What impact does conservatism have?
Investor perception
What emphasizes usefulness in financial information?
Qualitative characteristics
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