1 - Accounting Standards And Conceptual Frameworks

Question 1

Name the single source of authoritative non-governmental US gaap

Answer 1

The FASB “accounting standards codification” ASC

Question 2

The term international financial reporting standards include what standards?

Answer 2

IAS -international accounting standards
IFRS- international financial reporting standards
IFRIC interpretations
SIC interpretations

Question 3

Who are the primary users of general purpose financial reports

Answer 3

Existing and potential :

Investors
lenders
other creditors

Question 4

Name the pervasive constraint on the information provided in financial reporting

Answer 4

Cost constraint:
the benefits of reporting financial information must be greater than the cost of obtaining and presenting the information

Question 5

Name the fundamental qualitative characteristics of useful financial information

Answer 5

Relevance and faithful representation

Question 6

Name the three elements of relevance

Answer 6

Predictive value
confirming value
materiality

Question 7

Name the three elements of faithful representation

Answer 7

Neutrality
completeness
freedom from error

Question 8

Name the enhancing qualitative characteristics of financial information

Answer 8

Comparability
verifiability
timeliness
understandability

Question 9

According to SF AC number five what should a full set of financial statements include?

Answer 9

• Statement of financial position (the balance sheet)
• statement of earnings (the income statement)
• statement of comprehensive income
• statement of cash flow’s
• statement of changes in order owners equity