Payable b. Depreciation Expense c. Prepaid Insurance 9. The FASB conceptual framework project deals with all of the following except a. elements. All of the above were dealt with in the concept statements. According to Statement of Financial Accounting Concepts No. 2, timeliness is an ingredient of a. comparability.
Reliability includes all of the following except a. timeliness.
The general rule for revenue recognition is to recognize revenue a. during production. Two constraints mentioned by the FASB in Statement of Financial Accounting Concepts No. 2 on qualitative characteristics are a. understandability and relevance. A company recorded the purchase of pencil sharpeners as office equipment and depreciated them over their estimated useful life of three years. For construction contracts that require more than one accounting period to complete and for which the costs can be reasonably estimated, revenue should be recognized a. during production. If collectibility of the revenue is highly uncertain, it may be appropriate to recognize revenue a. during production.