Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Becker FAR > F1 - M1 - Standards and Conceptual Framework > Flashcards

F1 - M1 - Standards and Conceptual Framework Flashcards

1
Q

____ has legal authority to establish U.S Generally accepted Accounting Principals

A

SEC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The SEC has allocated the ______ to establish GAAP and self-regulate

A

Accounting Profession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

______ is the current standard-setting body in the US established in 1973

A

FASB (Financial Standards Board)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The most authoritative source of U.S GAAP is

A

FASB accounting standards Codification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Changes to existing authoritative GAAP for non issuers, nongovernment entities are communicated by the FASB, is it authorative?

A

Accounting Standards Updates (ASC) - Not authoriative - but provides background information, update the codifiation and desibe the basis conclusion on changes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Name the primary users of the general purpose financial reports (3)

A

Existing and potential investors, Lenders and Creditors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

_______ are not considered primary users

A

Regulators

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

______ is financial information that can make a difference in the decision made by users

A

Relevant Information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

_______ is Information that has value if it can be used by users to predict future outcomes

A

Predictive Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

______ provides feedback about the evaluation previously made by a user

A

Confirmatory Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

______ information, if omitted could affect the decision by users based on the financial information

A

Materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

To be used, Financial information must present the reported economic phenoma

A

Reliability or faithful representation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the elements of Relevant (3)

A

Predictive Value, Confirmatory Value, and Materiality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the elements of faithful representation (reliability)

A

Complete, Neutral, Free from Error

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the enhancing qualitative Characteristics (4)

A

CUT-V ( Comparability, Understandability, Timeless and Verifiability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

____ information is more useful when it can be compared with similar information about other entities or from other time periods

A

Comparability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

_____ means that the difference knowledgeable and independent observers can reach consensus

A

Verifability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

_____ information can be classified, characterized and presented clearly and concisely

A

Understandability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Means that information is available to users in time and be capable for influencing their decisions

A

Timeliness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

______ says the benefits of reporting financial information must be greater than the cost of obtaining and presenting the information

A

Cost constraint

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

_______ is the process of formally recording or incorporating an item in the financial statements of an entity and classifying it as an asset, liability, equity, revenue or expense

A

Recognition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Name the statements in a Full set (5)

A

1) Balance sheet, 2) income statement, 3) Statement of Equity, 4) Statement of Cash flow, 5) Statement of Comprehensive Income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

______ assumption - Economic activity can be accounted for when considered an identifiable set of activities

A

Entity Assumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

It is presumed that the entity will continue to operate in the foreseeable future

A

Going Concern

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What assumption - Money is an appropriate basis by which to measure economic activity. it does not change over time , inflation is not reflected in FS

A

Monetary Unit Assumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What assumption? - Economic activity can be divided in meaningful time periods

A

Periodcity Assumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What assumption? FS use a mixed attribute system that allows assets and liability to be measured at various basis

A

Measurement Principal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

______ is where revenue is recognized when the performance obligation is satisfied and expenses are recognized in the same period as the related revenue

A

Accrual Accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Given information that would make a difference in the decision processes

A

Full Disclosure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

_______ probable future economic benefit to be received by the company as a result of past transactions or events

A

Assets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

_______ probable future sacrifices of economic benefits arising from present obligation of a company or transfer assets or the residual interest in the assets of the company that remains after deducting its liability

A

Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is the accounting Equation?

A

Assets = Liability + Equity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Increases in equity of an entity resulting from transfers of cash, property, or services from owners (not revenue)

A

Investments by Owners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Decreases in equity of an entity resulting from transfers of cash, property, or services from owners (not expense)

A

Distributions to Owners

35
Q

Any changes in equity other than investments by owners and distributions to owners (net income plus other income)

A

Comprensive Income

36
Q

What is the Menomic for Comprehensive Income

A

Puffe or Puffer (IFRS)

37
Q

What are the 3 Elements of Financial Statements

A

Assets Liability and Equity

38
Q

_____ are inflows or enhancements of assets, or settlements of liability from delivering goods and services are a part of normal operations

A

Revenues

39
Q

_____ are outflows or uses of assets, or incurrences of liability from delivering goods or services as part of normal operations

A

Expenses

40
Q

Increases in equity from peripheral transactions and other events

A

Gains

41
Q

Decreases in equity from peripheral transactions and other events

A

Losses

42
Q

__________ is a present value approach in where one discount rate used to take the present value of a future cash flow stream.

A

Traditional Approach

43
Q

_______ is a Present Value approach where it is used when expected cash flow approach is to be used, rather than the interest rate selection, this approach used only the risk free rate of the return as the discount rate.

A

Expected Cash flow approach

44
Q

___________ are concerned with expected future cash receipts and payments

A

Accruals

45
Q

___________ are concerned with past cash receipts and payments

A

Deferrals

46
Q

___________- establishes International Financial Reporting Standards (IFRS).

A

The International Accounting Standards Board (IASB)

47
Q

The Financial Accounting Foundation (FAF) created the____________ to improve standard setting for privately held companies in the U.S.

A

Private Company Council (PCC)

48
Q

The goal of the PCC is to establish alternatives to U.S. GAAP, where appropriate, to make private company financial statements more ______, less ______ and _______.

A

more relevant, less complex, and cost-beneficial

49
Q

______ is defined as the amount of cash or its equivalent that would be paid to acqire or replace an asset currently

A

Replacement Cost

50
Q

What are the five elements of Preent Value measurement?

A

1) Estimate of future cash flow, 2) expectation about timing varation of future cash flows, 3) time value of money 4) price of bearing uncertainity 5) Liquidity issues

51
Q

What is the mnemoic for Relevance.

A

Predict and Confirm your material Value (PCM)

52
Q

What is the nmenoic for Faithful representation

A

Complete & neutral (Completely Neutral is free from error)

53
Q

The __________ concept defines income as the change in net resources other than from owner transactions.

A

financial capital maintenance

54
Q

The financial capital maintenance concept is the capital maintenance concept used in present __________ and ____________.

A

financial statements and comprehensive income.

55
Q

The starting point in IFRS 1 is an opening ____________ prepared at the date of transition to IFRS.

A

IFRS statement of financial position

56
Q

Comprehensive income includes all changes in equity during a period except ______________

A

those resulting from investments by owners and distributions to owners

57
Q

The date of transition to IFRS is defined as the ____________ for which an entity presents full comparative information under IFRS in its first IFRS financial statements.

A

beginning of the earliest period

58
Q

An entity’s first IFRS financial statements shall include at least

A

(3) three statements of financial position, (2) two statements of profit or loss and other comprehensive income, (2) two separate statements of profit or loss (if presented), (2) statements of cash flows, and two statements of changes in equity and related notes

59
Q

________ means the process of converting a noncash resource or right into cash.

A

realization

60
Q

The _______ concept defines income as the change in net resources other than from owner transactions

A

financial capital maintenance

61
Q

FASB Statements, Technical Bulletins, and Interpretations are part of the ____________________.

A

FASB Accounting Standards Codification

62
Q

FASB Accounting Standards Codification consist of (3)

A

FASB Statements, Technical Bulletins, and Interpretations

63
Q

The Codification includes ________________ content for reference by public companies.

A

Securities and Exchange Commission (SEC)

64
Q

The disclosure of an _________ recognized and reversed for the first time in preparing the opening statement of financial position for first-time adopters for IFRS

A

Impairement loss

65
Q

A new Financial Accounting Standards Board (FASB) standard is issued only after a ______ vote by the members of FASB

A

Majority

66
Q

What is the equation for Life insurance Expense

A

Insurance Premium - Cash Surrender Value - Dividends

67
Q

The primary objetive of accounting is to _________

A

measure income

68
Q

What is the basic of all economic activity

A

Monetary units

69
Q

What is the most authoriative set of accounting pronoucements?

A

FASB Codification

70
Q

What are the two levels of GAAP?

A

Authorative and Non-authoritative

71
Q

Managerial accounting uses what focus

A

Timeliness

72
Q

Managerial Accounting does not follow _____

A

GAAP

73
Q

What are the primary users of the financial Statements

A

Existing and potential investors and lenders and other creditors

74
Q

Form 10K is filed _____ and is _______

A

Annually, Audited

75
Q

Wht are the primary constantis for financial reporting? (2)

A

Cost vs benefits and Materaility.

76
Q

IFRS hierarchy of guidance, the first step to

A

selecting an accounting policy in a particular situation is to determine if there is an IFRS that specifically applies to the transaction or event.

77
Q

The entity presenting its most recent previous financial statements in accordance with

A

1) national requirements, using some individual IFRS to account for items for which national requirements do not exist, is one of the criteria that would qualify an entity’s financial statements as the entity’s “first set” as defined by IFRS 1

78
Q

IFRS requires that noncash investing and financing activities be disclosed in the _____________.

A

Notes to the Financial Statements

79
Q

a first-time adopter of IFRS recognize the adjustments required to present its opening IFRS statement of financial position in __________ or in the appropriate in another category of ________.

A

All the adjustments should be recognized directly in retained earnings, or, if appropriate in another category of equity.

80
Q

What are the secondary constraints of financial reporting

A

Comparability and Consistency

81
Q

What are the two qualitative characteristics of financial reporting

A

Relevance and Faithful representation

82
Q

when an estimate is necessary due to uncertainity ______ chooses the best option that wont overstate the financial position of the company

A

Conservtism

83
Q

What level 3 disclosures are required by Non-public entities

A

Assets transfered in and out of level 3

84
Q

What level 3 disclosures are required by Public entities (2)

A

1) Level 3 changes in unrelaized gains.losses included in OCI and 2) significant unobservable inputs

Becker FAR (72 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions