F1

Question 1

The FASB is

Answer 1

a private sector subject to SEC

Question 2

From cash to accrual basis

Answer 2

cash base operating exp xxx
+ the beg of year prepaid Exp xxx
- YE prepaid exp -xxx
- beg of year accr exp -xxx
+ YE accr exp +xxx
= Accrual Base operating Exp

Question 3

general rule to convert from cash to accrual is

Answer 3

Add decreases in liabilities 
\+ Decreases in Assets
- increases in Liabilites
- Decreases in assets
= ACCR basis net income

Question 4

the codification is

Answer 4

is a sole source of US GAAP, for nongovermental entities

Accounting Standards codification comprise authoritative US GAAP for publicly traded companies

Question 5

when to detemin the FV of an Asset or Liab

Answer 5

At Exit price

Question 6

element

Answer 6

The item has a cost of value that can be measured reliab;y

Question 7

What is GAAP

Answer 7

Set of rules that affects three aspects in financial stmt
Recognition: item is recorded in fin stmt
MeasurementL concerns dollar amount assigned to item
Disclosure: footnotes of unrecognize amounts for fin position

Question 8

FASB

Answer 8

FINANCIAL ACCOUNTING STANDARD BOARD
Currently the standard setting body of US
Stablish standards for the private sector. SFAC. Accounting standards are not law.

Question 9

SEC

Answer 9

stablish GAAP for the public sector. Main purpose is to promote efficien allocation of capital maintaining open ordely and fair securities markets

Question 10

AICPA

Answer 10

1939 appointed CAP (commitee of Accounting Procedure for private sector to promulgating GAAP

Question 11

cap

Answer 11

Issued 51 Accounting Research Bulletins (ARBS) it still constitute GAAP

Question 12

APB Accounting Principles Board

Answer 12

1959 took over CAP Issued 31 opinions, many remain as GAAP

Question 13

Wheat Commitee

Answer 13

1971 which recommended the formation of FASB to take ove the APB. In 1973 FASB took over

Question 14

Current Accounting Setting mechanism

Answer 14

FAF Financial Accounting foundation. Oversigh the fasb, apponts members and ensures funding
FASB -Establishes GAAP ,Financial Accounting Standards for buss. entities
FASAC Provides guidance on major policy issues, projects and formation of task forces

Question 15

EITF Emerging Issues Task Force

Answer 15

act as a filter to FASB focus on pervasive issues - 15 members- accelerate the process

Question 16

Steps to issue a standard

Answer 16

1. • Condidets to add a project in agenda consult FAF
2. • Conducts Research
3. • Holds a public hearing on the topic
4. -Evaluate research and comments and issue an exposure draft
5. • Solicita additional comments
6. • Finalize new accounting guidance and issue accountin Standards Updates ASUs