CFAS Flashcards
1
Q
Who will prevail? PFRS or CF?
A
PFRS (CF is not a PFRS)
2
Q
Fundamental Qualitative Characteristics is composed of …
A
- Relevance
- Faithful Representation
3
Q
Enhancing Qualitative Characteristics is composed of …
VCUT
A
- Verifiability
- Comparability
- Understandability
- Timeliness
4
Q
Ingredients of Relevance
A
- Predictive Value
- Confirmatory Value
5
Q
Ingredients of Faithful Representation
FNC
A
- Free from Error
- Neutrality
- Completeness
6
Q
3 Applications of Matching Principle
1. Cause and Effect
2. Systematic and Rational
3. Immediate Recognition
How do they differ?
A
- Cause and Effect = expense is recognized when revenue is recognized
- Systematic and Rational = depreciation
- Immediate Recognition = OPEX
