FAR 1

Question 1

IASB

Answer 1

International Accounting Standards Board

Question 2

FASB

Answer 2

financial accounting standards board

Question 3

ASC

Answer 3

accounting standards codification

Question 4

SFAC

Answer 4

statements of financial accounting concepts

Question 5

IFRS

Answer 5

international financial reporting standards

Question 6

Replacement Cost

Answer 6

the amount of cash or its equivalent that would have to be paid to acquire or replace an asset currently. replacement cost is an acquisition cost

Question 7

Entity Assumption

Answer 7

economic activity can be accounted for when considering an identifiable set of activities (separate corporation/division)

Question 8

going concern assumption

Answer 8

presumed the entity will continue to operate in the foreseeable future

Question 9

monetary unit assumption

Answer 9

assumed that money is an appropriate basis to measure economic activity

Question 10

periodicity assumption

Answer 10

economic activity can be divided into meaningful time periods

Question 11

measurement principle

Answer 11

F/S allow assets and liabilities to be measured at various bases such as historical cost, fair value, net realizable value, present value, etc.