Question 20 If the notes are issued at a premium, the effective rate is lower than nominal rate. True O False Question 21 The International Accounting Standards Board (ASB) defines one of the 5 elements as follows: "the residual interest in the assets of the entity after deducting all its liabilities" Which element matches this description? o Expense O Liability Equity O Asset Question 22 What is meant comparability when discussing financial accounting information? Information is reasonably free from error. Information has predictive or feedback value. Information is timely Information that is measured and reported in a similar fashion across companies. Question 23 The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a statement of financial position and which is based on an estimate of bad debts, is an application of the O revenue recognition principle. expense recognition principle. O monetary unit. O accrual concept Question 24 In the conceptual framework for financial reporting, what provides the why the purpose of accounting? Recognition, measurement, and disclosure concepts such as assumptions, principles, and constraints Objective of financial reporting O Qualitative characteristics of accounting information Elements of financial statements