Question 1 - 5 Multiple Choice - Write your answer on the Response line 1. If accounting information has predictive value, it will help users (a) prepare for future Canada Revenue Agency audits. (b) make predictions about future events. (c) make predictions about foreign currency exchange rates. (d) confirm or correct previous predictions or expectations. Response 2. The measurement principle that says assets are reported at its past purchase price (a) current value. (b) historical cost. (c) materiality. (d) going concem. Response 3. The qualitative characteristic that says the value of information should exceed the cost of preparing it is called (a) relevance. (b) understandability. (c) cost constraint. (d) verifiability Response 4. Which of the following statements is not true? (a) Comparability means a company changes its accounting principles from year to year. (b) Faithful representation means information must be neutral, complete, and free from error. (c) Relevant accounting information must be capable of making a difference in a user's decision. (d) For accounting information to be relevant, it must have timeliness. Response 5. Accounting information should be neutral in order to enhance (a) faithful representation. (b) materiality. (c) comparability. (d) timiliness. Response