Final Exam

Question 1

Third Level

Answer 1

Recognition, measurement and disclose concepts

Question 2

Recognition, measurement and disclosure concept

Answer 2

1. Assumptions
2. Principals
3. Constraints

Question 3

Assumptions

Answer 3

1. Economic Entity
2. Going Concern
3. Monetary Unit
4. Periodicity

Question 4

Principals

Answer 4

1. Measurements
2. Revenue Recognition
3. Expense Recognition
4. Full Disclosure

Question 5

Constraints

Answer 5

Cost

Question 6

Second Level

Answer 6

Qualitative Characteristics

Elements

Question 7

Qualitative Characteristics 2

Answer 7

Fundamental Qualities

Enhancing Qualities

Question 8

Fundamental Qualities 2

Answer 8

Relevance

Faithful Representation

Question 9

Relevance 3

Answer 9

Predictive Value
Confirmatory Value
Materiality

Question 10

Faithful Representation 4

Answer 10

1. Completeness
2. Neutrality
3. Free From Error

Question 11

Enhancing Qualities 4

Answer 11

1. Comparability
2. Verifiability
3. Timeliness
4. Understandability

Question 12

Elements 10

Answer 12

1. Assets
2. Liabilities
3. Equity
4. Investment by Owners
5. Distribution by Owners
6. Comprehensive Income
7. Revenue
8. Expenses
9. Gains
10. Losses

Question 13

First level- Objective

Answer 13

Provide information about the reporting entity that is useful to present and potential equity investors, lenders and other creditors in their capacity as capital providers

Question 14

Financial Accounting

Answer 14

is External and looks at the entire company

Question 15

Managerial Accounting

Answer 15

is Internal and looks at info piece by piece

Question 16

Most Frequent Financial Statement

Answer 16

1. balance sheet
2. income statement
3. statement of cash flow

Question 17

Due Process 6 Steps

Answer 17

1. Topics identified and placed on boards agenda
2. Research and analysis conducted and preliminary views of pros and cons are issued
3. Public hearing on proposed standard held 60 days past release
4. Board evaluates responses and publics response and issues an exposure draft
5. Board evaluates responses and changes exposure draft after 30 days if needed
6. Final Standard Issued

Question 18

Two Major Types of Pronouncements Issued by FASB

Answer 18

1. Accounting Standard Updates (ASU)

2. Concept Statements

Question 19

Accounting Standard Updates (ASU)

Answer 19

These updates amend the accounting standards codification, which represents the source of authoritative account standards other than standards issued by SEC
- Emerging issues task force (EITF): deals with new and unusual financial transaction

Question 20

Concept Statements

Answer 20

Board uses in developing standards. Uses due process but does not establish GAAP