Deck1

Question 1

What is a characteristic that related both to “accounting relevance” and “faithful representation”?

Answer 1

Comparability

Question 2

“Confirmatory Value” is information that can help you make decisions in the (a) past (b) present (c) future.

Answer 2

(c) future

Question 3

Name the 3 ingredients of “faithful representation”

Answer 3

neutrality, completeness, free from material error

Question 4

Do the financial statements provide direct information about management?

Answer 4

No

Question 5

“Predictive Value” and “Confirmatory Value” are the two components of ____________

Answer 5

Relevance

Question 6

For interim reporting, which is more important? Timeliness or Faithful Representaiton

Answer 6

Timeliness - Interim reports contain more estimated information than annual reports

Question 7

The “Conceptual Framwork” (a) is GAAP (b) is the “Constitution” for developing GAAP

Answer 7

(b) Constitution - they provide the guidelines for establishing GAAP, but they are not GAAP

Question 8

Accrual Accounting - when are revenues and expenses recognized

Answer 8

When incurred

Question 9

When cash activity happens first you create a __________ account. (a) accrual (b) deferal

Answer 9

(b) deferral

Question 10

Prepaid expenses are ________ expenses. (a) accrued (b) deferred

Answer 10

(b) deferred