Question

Please answer all the questions:

Blackstone Corporation does not report an item on the balance sheet it is not large enough to influence a financial statement user. This generally accepted accounting principle is

Materiality

Matching

Going concern

Conservatism

This quality assumes that information is reasonably free from error

Relevant

Conservatism

Understandability

None of the above

An economist would use financial statements of the company to forecast trends. These financial statements are examples of

Managerial accounting

Financial accounting

Tax accounting

None of the above

An addition to the Internal Revenue Code of the United States impacts

Financial accounting

Managerial accounting

Tax accounting

None of the above

Answer 1

1) Blackstone Corporation does not report an item on the balance sheet that is not large enough to influence a financial statement user. This generally accepted accounting principle is that of Materiality. So, correct option is a.

2) The principle which assumes that information is reasonably free from error is the principle of Reliability. So, correct option is d.

3) An economist using financial statements of a company to forecast the trends is an example of Managerial accounting. So, correct option is a.

4) An addition to Internal Revenue Code of United States impacts Tax accounting. So, correct option is c.