Financial Accounting Standards Board's Conceptual Framework

The Financial Accounting Standards Board (FASB) follows which of the following to achieve its goals when developing standards?

Exposure draft Discussion memorandum FASB standard

Which of the following is an element of the concept statements?

Losses

Which of the following is an element of the concept statements? Payments

Losses

Which of the following is considered a concept statement?

Qualitative characteristics of accounting information Objectives of financial reporting by business enterprises

Which of the following is a qualitative characteristic of the concept statements?

Relevance Reliability

Which of the following is a basic premise that the Financial Accounting Standards Board (FASB) relies on in establishing financial accounting standards?

Responsiveness to the needs and viewpoints of the entire economic community The continued requirement to operate in full view of the public through due process system that gives interested persons ample opportunity to make their views known

Which of the following is the main type of pronouncement that the Financial Accounting Standards Board (FASB) issues?

Standards, interpretations, and staff positions Emerging Issues Task Force statements Financial accounting concepts

The Financial Accounting Standards Board (FASB) was founded and became operational in which of the following years?

1972 and 1973

The Financial Accounting Standards Board (FASB) develops and issues financial accounting standards through a transparent and inclusive process intended to promote financial reporting that provides useful information to investors and others who use financial reports. This transparent and inclusive process is called __________.

due process

Financial statements are used to assess

future cash flows

What aspect does the conceptual framework recommend for financial accounting and financial statements?

The function

Which is of the following is a principle of the Generally Accepted Accounting Principles (GAAP)?

Time period assumption Full disclosure principle Economic entity assumption

supposed to convey a system of interrelated objectives and fundamentals that can lead to consistent standards.

conceptual framework

concept statements found within the conceptual framework.

8

Which of the following kinds of companies report their financial statements using the International Financial Reporting Standards (IFRS)?

Companies that are trying to enter into a foreign market Companies that want to be able to show financial comparisons Some international companies

What is a basic level that the eight concept statements encompass?

Fundamental concepts Basic objectives

The Financial Accounting Standards Board (FASB) issues which of the following accounting standards?

Generally Accepted Accounting Principles

Which of the following is a major purpose of the Accounting Principles Board (APB)?

Narrow the areas of difference and inconsistency in practice Advance the written expression of accounting principles Determine appropriate practices

The Securities and Exchange Commission (SEC) relies on the Financial Accounting Standards Board (FASB) to develop

accounting