Brainscape's Knowledge GenomeTM

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


See full index

CPA > FAR1 > Flashcards

FAR1 Flashcards

1
Q

SEC

A

Legal authority to establish U.S. GAAP (established in 1934)

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

Committee on Accounting Procedure (CAP)

A

Part time committee of the AICPA: 1939 - 1959

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

Accounting Principles Board (APB)

A

Part time committee of the AICPA: 1959 - 1973

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

Financial Accounting Standards Board (FASB)

A

Independent full time organization to determine GAAP: 1973 - present

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

FASB Codification

A

Effective July 1, 2009, the FASB Accounting Standards Codification became the single source of “authoritative” nongovernmental U.S. GAAP

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

Private Company Council (PCC)

A

The goal of the PCC is to establish alternatives to U.S. GAAP, where appropriate, to make private company financial statements more relevant, less complex, and cost-beneficial.

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

Accounting Standards Updates

A

FASB’s updates to the codification

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

IASB and FASB Convergence

A

Single set of high-quality, international accounting standards that companies could use for both domestic and cross-border financial reporting. (eliminate the differences between two sets) NOT HAPPENING

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

Conceptual Framework (U.S.)

A

Basis for all FASB pronouncements - basic reasoning (based on rules)

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

Fundamental Qualitative Characteristics

A

Relevance and Faithful

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

Relevance

A

PCM (passing confirms money)

Predictive Value, Confirming Value, Materiality

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

Faithful Representation

A

Completeness (primary FS and notes), neutrality, and freedom from error: reliable

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

Enhancing Qualitative Characteristics

A

Compare and verify in time to understand (comparability = consistency):
Timeliness, understandability, comparability and verifiability

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

Cost Constraint

A

Benefit > Cost

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

Measurement Attributes for Assets and Liabilities

A

Historical Cost - PP+E
Current Cost - Inventory
Net realizable Value - A/R
Current market Value - Marketable Securities
Present Value of future cash flows - LT Debt “bonds”

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

Revenue Recognition Principle

A

Revenue should be recognized when it is “earned” and when it is “realized (already paid) or realizable (to accrual for)”

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

Conservatism Principle

A

Revenues/gains when complete “wait”

Expenses/loss recognize “now”

18
Q

5 Elements of Present Value Measurement

A
  1. Estimate of future cash flow
  2. Timing variations of future cash flows
  3. Time value of money (risk-free rate)
  4. Uncertainty (credit risk)
  5. Other factors (liquidity issues and market imperfections)
19
Q

Income Statement

A

Useful in determining profitability, value for investment purposes, and credit worthiness (for period of time)

20
Q

Discontinued operations

A

Has been disposed of and/(or) is classified as held for sale

represents strategic shift/major effect on operations

21
Q

Strategic shift/major effect on operations

A

Disposal of a major geographical area, equity method investment, or line of business (GEL)

22
Q

Subsequent Increases in Fair Value

A

A gain is recognized for any subsequent increase in fair value minus the costs to sell (but not in excess of the previously recognized cumulative loss)

23
Q

Changes in Accounting Estimate

A

Prospective - affects current and future income from continuing operations

24
Q

Changes in Accounting Principle

A

Retro: Non-comparative vs. Comparative
Non-comparative: restate B. RE in period of change
Comparative: restate B. RE in first period presented

25
Q

Exception to General Rule from Change in Accounting Principle

A

Change to LIFO and Change in Depreciation method = prospective (like a change in estimate)

26
Q

Changes in Accounting Entity

A

Restate - from earliest period presented (error correction). If presented = correct the data, If NOT presented = B. RE of earliest year presented

27
Q

Comprehensive Income

A

Net Income + Other Comprehensive Income (OCI)

28
Q

PUFE(R) or PUFE likes to Revalue his income

A 
Pension adjustments
Unrealized gains and losses (available-for-sale securities)
Foreign currency items
Effective portion cash flow hedges
Revaluation surplus (IFRS only)
29
Q

Changes in AOCI

A

Beginning Balance
OCI (current year)
- Amounts reclassified (to account for double counting)
= Net current-period OCI
Beg. Balance + Net current = Ending Balance

30
Q

Going Concern

A

Reasonable period not to exceed one year beyond F.S. date both quantitative and qualitative (interim too)

31
Q

Interim Financial Reporting

A

Timeliness over Reliability (unaudited), integral part of annual F.S.

32
Q

Interim Income Taxes

A

Multiply the year-to-date income by the estimated effective tax rate and subtract the result from the provision included in the previous quarter

33
Q

Quantitative Thresholds for Reportable Segments

A

10% “Size” Test (internal and external)

Revenue, Profit/Loss, Assets

34
Q

75% “Reporting Sufficiency” Test

A

At least 75% of external (consolidated) revenue is included in reportable segments

35
Q

Form 10-K

A

Filed annually by U.S. registered companies (issuers) (audited)
60 days = large accelerated filers,
75 days = accelerated filers,
90 days = all other registrants

36
Q

Form 10-Q

A

Filed quarterly by U.S. registered companies (issuers) (unaudited)
40 days = (large) accelerated filers,
45 days = all other registrants

37
Q

Form 11-K

A

Annual report of a company’s employee benefit plan(s).

38
Q

Forms 20-F and 40-F

A

Filed annually by foreign private issuers

39
Q

Form 6-K

A

Filed semi-annually by foreign private issuers

40
Q

Form 8-K

A

Filed to report major corporate events/significant events

41
Q

Forms 3, 4, and 5

A

Filed by directors, officers, or beneficial owners of more than 10% of a class of equity securities of a registered company (does not have XBRL/XML)

42
Q

Regulation S-X

A

SEC sets forth the “form and content” of and requirements for interim and annual f.s. to be filed with the SEC
Interim - unaudited (U.S. - Q)(Foreign - Semi)
Annual - audited (B.S. 2 yrs, I.S./C.F. 3 yrs)

CPA (11 decks)

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