ACC Standards

Question 1

SEC

Answer 1

has legal authority to establish GAAP

Question 2

FASB ASC Codification

Answer 2

single source of authoritative

Question 3

FASB

Answer 3

full time organization that determines GAAP

Question 4

IASB purpose

Answer 4

develop single set of high quality global accounting standards

Question 5

Conceptual Framework

Answer 5

basic reasoning

Question 6

Primary users of financial statements

Answer 6

existing and potential investors lenders and creditors

Question 7

Fundamental Qualitative Characteristics

Answer 7

Relevance and Faithful Representation

Question 8

Relevance

Answer 8

“Passing Confirms Money”

predictive Value
Confirming Value
Materiality

Question 9

Faithful Representation

Answer 9

“Completely Neutral is free from error”

Completeness
Neutrality
Free from Error

Question 10

Enhancing Qualitative Characteristics

Answer 10

“Compare and verify in time to understand”

Comparability
Verifiability
Timelineness
Understandability

Question 11

Cost Constraint

Answer 11

Benefit > Cost

Question 12

Full set of Financial Statements

Answer 12

statement of financial position ( balance sheet )
statement of earnings ( income statement )
statement of comprehensive income
statement of cash flows
statement of changes in owners equity

Question 13

PPE measured at

Answer 13

historical cost

Question 14

Inventory measured at

Answer 14

current cost

Question 15

A/R measured at

Answer 15

NRV

Question 16

Stocks measured at

Answer 16

( Current) Market Value

Question 17

Bonds ( LT Debt) measured at

Answer 17

PV of future cash flows

Question 18

SFAC No. 6 Elements

Answer 18

REGL ALE needs ID

Comprehensive Income 
Revenues 
Expenses
Gains 
Losses

Assets
Liabilities
Equity

Investments by Owners
Distributions by Owners

Question 19

Five elements of PV measurement (SFAC No. 7)

Answer 19

Estimate of Future cash flow 
expectations about timing variances
TVM
Price for bearing uncertainty
Other factors