Basic Accounting Theory Flashcards
1
Q
The Relevance of providing information in the Financial Statements is subject to the constraint of
A
Cost Benefit
2
Q
The Concept of Reliability is?
A
No Longer part of the conceptual Framework
3
Q
What Account would cause earnings to differ from Comprehensive Income?
A
Unrealized gain/loss on AFS Securities
4
Q
Comprehensive Income excludes changes from equity that happens in what account?
A
Dividend Paid to Stockholders
5
Q
What is the realization concept?
A
Converting Non-Cash Rights/rights into cash via sale of assets for Cash or cash claims
Ex - Sale of Depreciated cash for Note Receivable
6
Q
What Capital maintenance concept is applied to Net Income and Comprehensive Income?
A
Financial Capital
