far sec 1 all multiple choice

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consistency

use of the same method among periods or among entities, and helps achieve comparability, which is an enhancing qualitative characteristic

predictive value

used to predict future outcomes

periodicity assumption

Economic activity can be divided into meaningful time periods

each of the following is correct regarding the financial accounting standards board except

***insert image

which of the following assumptions means that money is the common denominator of economic activity and provides an appropriate basis for accounting measurement and analysis

monetary unit

relevance

must have predictive and/or confirming value

on dec 31 brooks co disposed of assets and ended operations... net realizable value of equipment was below historical cost. what is the appropriate measure basis?

net realizable value

according to fasb conceptual framework, what does the concept of faithful representation include?

neutrality

according to fasb conceptual framework, predictive value is relevant? faithful representation?

Yes, No

is a component of faithful representation

neutrality

according to fasb conceptual framework an entity's revenue may result from

a decrease in liability from primary operations

the statements of financial accounting concept are

not GAAP

Changes to existing authoritative GAAP for nonissuer, nongovernmental entities are communicated by financial accounting standards board through the issuance of

accounting standards updates

The FASB amends the Accounting Standards Codification through the issuance of

accounting standards updates

accrual accounting involves accruals and deferrals. Which of the following best describes accruals and deferrals?

accruals are concerned with expected future cash receipts & payments while deferrals are concerned with past cash receipts and payments

after codification was created

all updates are made through the issuance of accounting standards updates

which of the following statements best describes an operating procedure for issuing FASB accounting standards update

an accounting standards update is issued only after a majority vote by the members of the FASB

according to fasb conceptual framework, which of the following is an essential characteristic of an asset

an asset provides future benefits

going concern assumption

an entity will continue to operate in the foreseeable future

when a cpa is applying the enhancing qualitative characteristics of useful financial info, it is important for the cpa to remember that

applying the enhancing qualitative characteristics is an iterative process that does not follow a prescribed order

interim financial reporting should be viewed primarily in which of the following ways

as reporting for an integral part of an annual period

allocation

assigning or distributing an amount according to a plan or formula

how are amendments incorporated into the fasb accounting standards codification

by releasing an accounting standards update

matching

combined recognition of revenues and expenses that result directly and jointly from the same transaction or other events

which of the following is true regarding the comparison of managerial to financial accounting

managerial accounting need not follow gaap while financial acct must follow them

is a component of relevance (both answers)

materiality, predictive value

exposure draft

document used during the due process system and presents the proposed accounting standard to the public for review

economic entity assumption

economic activity can be accounted for when considering an identifiable set of activities

according to fasb conceptual framework, neutrality is an ingredient of

faithful representation

which of the following characteristics mean that info is reasonably free from error and bias?

faithful representation

according to fasb conceptual framework, useful information must exhibit the fundamental qualitative characteristics of

faithful representation and relevance

a us public company needs guidance in accounting for and reporting a complex derivative transaction that it entered into with a European subsidiary. This company is most likely to find the appropriate guidance in the

fasb accounting standards codification

which of the following is the most authoritative source of US GAAP

fasb accounting standards codification

prior to codifications

fasb issued new accounting pronouncements through statements of financial accounting standards

the exposure draft allows for...

feedback from interested user groups and is used in the creation of the accounting standards update

representational faithfulness

financial info faithfully represents the economic phenomena

neutrality

financial info is free from bias

concept standards are not

gaap

under a royalty agreement with another company, Wand Co. will pay royalties for the assignment of a patent for three years. The royalties paid should be reported as expense:

in the period incurred

the fasb statements of financial accounting standards are

included in the account standards codification

primary users of financial reports

investors, lenders, creditors

other factors

liquidity issues and market imperfections

completeness is an ingredient of

not relevance yes faithful representation

statements of financial accounting standards

old terminology

According to fasb, to be relevant, information should have

predictive value

according to fasb conceptual framework, the quality of information that helps users forecast future outcomes is

predictive value

exposure draft

preliminary drafts of a proposed standard that FASB uses during the due process system of standard setting.

realization

process of converting noncash resources and rights into money

concept statements

provide the framework and basis upon which accounting standards are written

confirming value

provides feedback about evaluations previously made by users

according to fasb conceptual framework, the process of reporting an item in the financial statements of an entity is

recognition

according to fasb conceptual framework, the primary users of financial reports include all of the following except

regulators

users of financial statements frequently rely upon the data displayed in the financial statements to predict future financial outcomes. financial accounting concepts refer to the characteristic of accounting information that provides predictive value to users as the quality of:

relevance

according to fasb conceptual framework, which of the following correctly pairs a fundamental qualitative characteristic of useful info with one of its components

relevance and materiality

according to fasb conceptual framework, certain assets are reported in financial statements at the amount of cash or its equivalent that would have to be paid if the same or equivalent assets were acquired currently. What is the name of the reporting concept?

replacement cost

The primary purpose of a not-for-profit organization's statement of activities is to provide relevant information to its

resource providers

time value of money

risk-free rate of interest

finance information provided in general purpose financial reports does not include info about

see image

SFAC (Statements of Financial Accounting Concepts) that requires a statement of comprehensive income is

sfac 5, dealing with recognition and measurement

fasb issues discussion papers to

solicit feedback on particular accounting and reporting issues

net realizable value

sp- disposal costs

the objectives of financial reporting stem from which of the following sources?

the needs of the external users of the info

cost constraint

the perceived benefits to be denied that exceeds the perceived costs associated with it

5 elements of present value measurement used to establish value of assets or liabilities

the price for bearing uncertainty, expectations about timing variations of future cash flows, other factors, time value of money, estimate of future cash flow

current market value

the price to sell (not acquire) an asset

conceptually, interim financial statements can be described as emphasizing which of the following enhancing qualitative characteristics?

timeliness

which of the following enhances relevance and faithful representation

timeliness

the primary objective of financial reporting is

to provide information that is useful for economic decision making

which of the following define equity as it relates to a business entity

total assets less total liabilities

materiality and relevance are both defined by

what influences or makes a difference to a decision maker


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Biology 103 - Module 4 Study Guide

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