Accounting Standards Conceptual Framework

Question 0

Relevance

Answer 0

Predictive value, confirming value, materiality

Passing confirms money

Question 1

Fundamental qualitative characteristics

Answer 1

Relevance and faithful representation

Question 2

Faithful representation

Answer 2

Completeness, neutrality, freedom from error

Question 3

Enhancing qualitative characteristics

Answer 3

C V T U

Comparability, verifiability, timeliness, understandability

Question 4

Financial statements include

Answer 4

Statement of:

Financial position, earnings, comprehensive income, cash flows, changes in owners equity

Question 5

Fundamental Recognition criteria

Answer 5

Definitions, measurability, relevance, reliability

Question 6

Measurements for assets and liabilities

Answer 6

Historical cost, current cost, bet realizable value, current market, present value of future cash flows

Question 7

Fundamental assumptions

Answer 7

Entity, going concern, monetary unit, periodicity, historical cost, revenue recognition, matching, accrual accounting, full disclosure, conservatism

Question 8

Elements of financial statements

Answer 8

Regal ale I.d.

Revenue expenses gains losses assets liabilities equity investments distributions

Question 9

Elements of present value measurement

Answer 9

1) estimate of future cash flows
2) expectations of fcf’s
3) time value of money
4) price of uncertainty
5) other factors

Question 10

Gross Concept

Answer 10

Revenues (less allowance) and expenses are reported in their gross amounts.

Question 11

Net Concept

Answer 11

Gains and Losses are reported in their net amounts (less net book value)