F1

Question 1

Standard-Setting Bodies in the U.S.?

Answer 1

1. Securities and Exchange Commission (SEC) 1934
2. Committee on Accounting Procedures (CAP) 1939-1959
3. Accounting Principles Board (APB) 1959-1973
4. Financial Accounting Standards Board (FASB) 1973- present

Question 2

Effective July 1, 2009 this became the single source of authoritative nongovernmental U.S. GAAP?

Answer 2

FASB Accounting Standards Codification

Question 3

Authoritative Literature Included in the Codification?

Answer 3

FEDPRIA

F-ASB
E-merging Issues Task Force (EITF) Abstracts and Topic D
D-erivative Implementation Group Issues
Accounting P-rinciples Board Opinions
Accounting R-esearch Bulletins
Accounting I-nterpretations
A-ICPA

Question 4

SEC standards included in the Codification?

Answer 4

Regulation For Accounting IS Emerging

Regulation S-X
Financial Reporting Releases (FRR)
Accounting Series Releases (ASR)
Interpretative Releases (IR)
Staff Accounting Bulletins (SAB)
EITF Topic D and SEC Staff Observer Comments

Question 5

How do you compute interim period tax expense?

Answer 5

Estimated annual effective tax rate X year-to-date income - tax expense recognized in previous interim period

Question 6

What are the Fundamental Qualitative Characteristics of Financial Accounting?

Answer 6

1. Relevance

2. Faithful Representation

Question 7

Components of Relevance?

Answer 7

“Passing Confirms Money”

a. Predictive Value
b. Confirmatory Value
c. Materiality

Question 8

Components of Faithful Representation?

Answer 8

“Completely Neutral Free from error”

a. Completeness
b. Neutrality
c. Freedom from error