According to the FASB and IASB conceptual frameworks, the quality of information that helps users forecast future outcomes is:

 

a.Representational faithfulness.

b.Neutrality.

c.Predictive value.

d.Confirming value.
Explanation

Choice "c" is correct. The quality of information that helps users forecast future outcomes is predictive value. Forecasting is predicting.

 

Choice "d" is incorrect. The quality of information that helps users forecast future outcomes is called predictive value, not confirming value. Confirming value provides feedback about evaluations previously made by users.

 

Choice "a" is incorrect. The quality of information that helps users forecast future outcomes is called predictive value, not representational faithfulness. Representational faithfulness means that financial information faithfully represents the reported economic phenomena.

 

Choice "b" is incorrect. The quality of information that helps users forecast future outcomes is called predictive value, not neutrality. Neutrality is the depiction of financial information that is free from bias in selection or presentation.

  高顿网校温馨提醒
  2015年USCPA考试进行改革,难度提升?没关系,高顿网校USCPA题库为你解忧,每题都附有详细的答案和解析,每天加强训练,通过考试指日可待!点此进入高顿网校USCPA免费题库>>>
  美国注册会计师精彩推荐:        USCPA招生专题
        2015年USCPA考试常见问题解析

展开全文