#7 Objectives, Qualitative Characteristics Flashcards
1
Q
According to the conceptual framework, the objectives of financial reporting for business enterprises are based on what?
A
The needs of the users of the information.
2
Q
Does the conceptual framework establish GAAP?
A
The conceptual framework does not establish GAAP, but rather provides a broad guideline for developing GAAP.
3
Q
What are the two primary qualitative characteristics?
A
Faithful Representation and Relevance
4
Q
What are the components of faithful representation?
A
Completeness, Neutral, and Free from error.
5
Q
What are the components of relevance?
A
Predictive value, Confirmatory value, and Materiality
6
Q
What are the 4 enhancing characteristics?
A
Comparability, Verifiability, Timeliness, and Understandability
