FAR1 Flashcards
1
Q
SFAC
A
Statement of Financial Accounting Concepts
2
Q
Objective of Financial Reporting
A
To provide information for primary users of financial statements that lead to better decision making
3
Q
Who are the primary users of the General purpose financial statements ?
A
Creditors Potential investors investors employee Management Government Regulators
4
Q
What are the qualitativr charactaristics of financial statements
A
Relevance
Faithful representation
5
Q
elements OF RELEVANCE
A
Confirmatory Values
Predictive Values
Material information
6
Q
Faithful represenation
A
Completeness
Neutral
Free from error
7
Q
WHAT ARE ENHANCING QUALITITAVE CHARACTRASTICS FOR FINANCIAL INFORMATION
A
comparable
verifiable
Timely
understandable
