Answers

Question 1

Yes, they are sufficient. Relevance and reliability qualify as criteria for assessing an accounting model. This is because for accounting information to be relevant, it ought to have a predictive value and presented in a timely basis. Relevant information acts as the basis of making predictions regarding the present, past and future events. Reliability on the other hand, shows that information can be depended upon to represent the appropriate events and conditions. Reliability stems from representational neutrality, faithfulness and verifiability.

Question 2

Measuring the changes in net worth should be used as the basis for measuring income. This is because the approach emphasizes on recognition, measurement and definition of assets and liabilities. As a result, income is measured and recognized as a by-product of assets and liabilities. It is the increase in value of the net assets that result to the rise in income.

Question 3

Yes, they are sufficient. This is because they have encompassed the aspects of relevance and reliability in a broader way, and have made additions to aspects such as measurability and definition.

Do you need an Original High Quality Academic Custom Essay?