FASB

Question 1

Exposure Draft

Answer 1

To seek information about accounting and reporting issues and holding public forums

Question 2

SFAC 4

Answer 2

Concepts designed to provide a basis for establishing detailed accounting and reporting standards

Represents recent expression of the overall purposes and related objectives of financial reporting by nonbusiness organizations

Question 3

Going concern

Answer 3

Business entity will continue to operate indefinitely

Question 4

Where does the company disclose information about its concentration of credit risks?

Answer 4

In the notes to the financial statement

Question 5

Faithful representation

Answer 5

Three characteristics:
Complete
Neutral
Free from Error

Question 6

FASB recommends in SFAC 8 disclosure for the following two future-oriented types of information:

Answer 6

(1) Estimates and assumptions

(2) management’s plans and strategies

Question 7

SEC rulemaking process

Answer 7

(1) Concept release
(2) Rule proposal
(3) Rule adoption

Question 8

How should discontinued operations that occur at mid year reported?

Answer 8

Reported separately, net of tax, on the income statement for the interim period

Disclosure in the notes in the interim statements is also required

Question 9

What is excluded from comprehensive income?

Answer 9

Investments by owners and distributions to owners

Question 10

Accounting Standards Codification

Answer 10

Source of authoritative GAAP recognized by FASB to be applied to nongovernmental entities

Question 11

What kind of characteristics make a difference to the users?

Answer 11

Qualitative NOT Quantitative