QUESTION: 25

When a company provides information that is of sufficient importance to influence the judgment and decisions of an informed user, which principle of Level 3 of the conceptual framework is being represented?

Faithful representation
Measurement
Full disclosure
Going concern

Answer(s): C

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QUESTION: 26

Which of the following is true of liabilities?

Current liabilities come due in less than a year
Current liabilities come due in less than 18 months
Noncurrent liabilities come due in less than a year
Both current and noncurrent liabilities come due in less than a year

Answer(s): A

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QUESTION: 27

Company XYZ does not disclose any information in the notes to their financial statements unless the value of the information to users exceeds the expense of gathering it. Which constraint of Level 3 of the conceptual framework does this represent?