Becker

Question 0

What does a summary of significant assumptions identify and describe?

Answer 0

Measurement bases used in preparing F/S
Accounting principles and methods
Criteria
Policies
Pricing

Question 1

What are the items included in other comprehensive income?

Answer 1

PUFE(R)
Pension adjustments
Unrealized G/L (available for sale securities)
Foreign currency translation adjustment
Effective portion cash flow hedges

Revaluation surplus (IFRS only)

Question 2

What is the rule of conservatism?

Answer 2

Revenues and gains should be recognized when the earnings process is complete.

Expenses and losses should be expenses immediately.

Question 3

Name the two fundamental qualitative characteristics of useful financial information.

Answer 3

Faithful representation and relevance.

Question 4

Name the ingredients of each, faithful representation and relevance.

Answer 4

Faithful representation: completeness, free from bias (neutral), free from error

Relevance: predictive value, confirming value, materiality

Question 5

Name all five enhancing characteristics.

Answer 5

Timeliness, verifiability, understandability, cost constraint, comparability.

Question 6

What are the maximum number of days after a company’s fiscal year end does the company have to file forms 10-K and 10-Q?

Answer 6

10-K:
Large accelerated filers - 60 days
Accelerated filers - 75 days
All other registrants - 90 days

10-Q:
Large accelerated filers - 40 days
Accelerated filers - 40 days
All other registrants - 45 days

Question 7

The 10% size test regarding operating segments states that:

Answer 7

Reported revenues (sales to external and inter segment sales) >10% of combined revenue of all operating segments

Reported profit/loss >=10% of the greater (absolute value) of:

• combined profit of all operating segments that did not report a loss
• combined reported loss of all operating segments that did report a loss

Assets greater than or equal to 10% of the combined assets of all segments.