CONCEPTUAL FRAMEWORK,STANDARDS,STANDARD SETTING Flashcards
What is the purpose of information presented in notes to the financial statements?
To provide disclosures required by generally accepted accounting principles
The Government Accounting Standards Board (GASB) is the body authorized to promulgate standards of financial accounting and reporting for:
governmental units.
How is the Form 10-Q filed with the SEC?
This form must be filed electronically on EDGAR unless this filing causes hardship on the filing company.
The SEC’s rulemaking procedures identified on their website include which of the following steps?
Rule adoption
During a period when an enterprise is under the direction of a particular management, its financial statements will directly provide information about:
enterprise performance but not directly provide information about management performance.
Consolidated financial statements are typically prepared when one company has a controlling financial interest in another, unless:
such control does not rest with the majority owner because the subsidiary is in bankruptcy.
required as part of the filing of the Form 10-Q
- A list of “material events” that have occurred with the company
- A discussion from the management
- Financial statements
SEC Regulation S-X provides guidance for the issuer regarding:
format and content of financial information submitted to the SEC.
are qualitative characteristics that enhance the usefulness of information that is relevant and faithfully represented.
Comparability, verifiability, timeliness, and understandability
Confirmatory value is a component of
relevance.
At the end of the accounting period, the components of other comprehensive income are transferred to which of the following stockholders’ equity accounts?
Accumulated other comprehensive income
How can forfeited nonvested accounts of an employee benefit plan be used?
forfeited nonvested accounts—specifically, identification of those amounts that are used to reduce future employer contributions, expenses, or reallocated to participant’s accounts, in accordance with plan documents.
reported as a decrease in the statement of changes in net assets available for benefits of an employee benefits plan?
Benefits paid to participants
GASB 1600.103 requires governmental entities to issue which two sets of financial statements?
The statement of net position and the statement of activities
included on a statement of changes in equity
The impact of the transactions on the number of shares of stock, if any, is presented in the descriptions to the left.
Events changing stockholders’ equity accounts are listed chronologically to the left.
Column headings identify individual stockholders’ equity accounts.
FASB ASC 274-10-35-11 states that nonforfeitable rights to receive future sums that have all the following characteristics shall be presented as assets at their discounted amounts:
The rights are for fixed or determinable amounts.
• The rights are not contingent on the holder’s life expectancy or the occurrence of a particular event, such as disability or death.
• The rights do not require future performance of service by the holder.
How should a gain from the sale of used equipment for cash be reported in a statement of cash flows using the indirect method?
In operating activities as a deduction from income
Reporting inventory at the lower of cost or market is a departure from the accounting principle of:
historical cost.
best describes an operating procedure for issuing a new Financial Accounting Standards Board (FASB) Accounting Standards Update?
An update is issued only after a majority vote by the members of the FASB.
entity develops and distributes accounting standards for non-U.S. companies?
IASB
The use of International Financial Reporting Standards is required by:
The International Accounting Standards Board (IASB)
accounting bases may be used to prepare financial statements in conformity with a comprehensive basis of accounting other than generally accepted accounting principles?
I. Basis of accounting used by an entity to file its income tax return
II. Cash receipts and disbursements basis of accounting
the modified cash basis of accounting is
The modified cash basis is a hybrid method that combines features of both the cash basis and the accrual basis.
The resulting balance sheet would include long-term assets, accumulated depreciation, and a liability for income taxes.
Modifications to the cash basis accounting include such items as the capitalization of assets and the accrual of income taxes
The University of Tulsa, a private institution, is required to report under the standards of which of the following bodies?
PrimarilyFASB
