Brainscape's Knowledge GenomeTM

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


See full index

FAR > Financial Accounting Standards Board > Flashcards

Financial Accounting Standards Board Flashcards

1
Q

Component of Relevance

A

Predictive Value

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

Increases in net assets from incidental or peripheral transactions affecting an entity.

A

Gains

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

The process of converting noncash resources and rights into cash or claims to cash.

A

Realization

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

Enhancing qualitative characteristic of relevance and faithful representation.

A

Comparability

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

The process of formally recording an item in the financial statements of an entity after it has met existing criteria and been subject to cost-benefit constraints and materiality thresholds.

A

Recognition

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

All changes in net assets of an entity during a period except those resulting from investments by owners and distributions to owners.

A

Comprehensive Income

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

Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity’s ongoing operations.

A

Revenues

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

A note receivable was signed by the customer on Nov 1, year 1. It is a 6-month note with an interest rate of 12%, with the principal and interest paid at maturity.

A

No change to Notes Receivable - Interest receivable is recorded in a separate account.

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

$640,000 historical cost of equipment depreciated over 20 years with a $60,000 salvage value equals how much in accumulated depreciation in one year?

A

Cost of Equipment - Salvage Value = Basis Cost of Equipment to be depreciated.

$640,000 - $60,000 = 580,000 / 20 = $29,000 per year depreciation

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

Long-term Receivables

A

Present value of future cash flows

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

Available for sale securities

A

Current market value

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

Equipment

A

Historical cost or historical proceeds

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

Warranty Obligations

A

Net realizable value or settlement rate

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

Short-term payables

A

Historical cost of historical proceeds

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

Accounts Receivable

A

Net realizable value or settlement rate

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

Bonds payable, due in 10 years

A

Present value of future cash flows

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

Trading Securities

A

Current market value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The amount of cash, or its equivalent, that could be obtained by selling an asset in orderly liquidation.

A

Current Market Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The quality of information that helps users to increase the likelihood of correctly forecasting the outcome of past or present events.

A

Predictive Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A performance measure concerned primarily with cash-to-cash cycles.

A

Earnings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Allowance for uncollectible accounts

A

Contra Asset

22
Q

T or F: The total amount included in cash or in cash equivalents in the statement of cash flows must be the same title and groups of accounts used in the statement of financial position.

A

TRUE

23
Q

T or F: International accounting standards are not included in the FASB Accounting Standards Codification

A

TRUE

24
Q

What is typically issued as part of the due-process activities of the FASB for amending the FASB Accounting Standards Codification?

A

A proposed accounting standards update.

25
Q

Interim Financial Statements can be described as emphasizing:

A

Timeliness over faithful representation

26
Q

What relates to both accounting relevance and faithful representation?

A

Comparability

27
Q

According to the conceptual framework, the quality of information that helps users increase the likelihood of correctly forecasting the outcome of past or present events is called:

A

Predictive Value

28
Q

Predictive Value is an ingredient of:

A

Relevance

29
Q

Faithful Representation can be broken down into:

A

Completeness, free from material error, and neutrality.

30
Q

According to the conceptual framework, the objective of reporting for business enterprises are based on:

A

The needs of the users of the information.

31
Q

Neutrality is an ingredient of:

A

Faithful representation - NOT relevance

32
Q

Predictive value along with confirmatory value is a component:

A

Relevance

33
Q

What is NOT an enhancing qualitative characteristic?

A

Confirmatory Value

34
Q

What is the conceptual framework intended to establish?

A

The objectives and concepts for use in developing standards of financial accounting and reporting.

35
Q

What are the ingredients of Relevance?

A

Predictive Value, Confirmatory Value, Materiality.

36
Q

What is Comparability?

A

The quality of information that enables users to identify similarities and differences between sets of information.

37
Q

What are the Primary Qualitative Characteristics of Financial Information?

A

Faithful representation and Relevance (FARR).

38
Q

What are Objectives of Financial Reporting?

A

To provide information about the entity to current and future users of the financial statements who are making credit and investment decisions.

39
Q

What is Verifiability?

A

Information is verifiable if different knowledgeable and independent observers can reach similar conclusions.

40
Q

List the enhancing qualitative characteristics of financial information:

A

Comparability
Verifiability
Timeliness
Understandability

41
Q

What is Confirmatory Value?

A

To be relevant, accounting information should assist decision makers in confirming past predictions.

42
Q

What is timeliness?

A

To be relevant, accounting information must be received in time to make a difference to the decision maker.

43
Q

What is completeness?

A

Information is complete if it includes all data necessary to be faithfully representative.

44
Q

What is Predictive Value?

A

To be relevant, accounting information should assist financial statement users in making predictions about future events.

45
Q

What is Understandability?

A

Information is understandable if the user comprehends it with reasonable effort and diligence.

46
Q

What is Neutrality?

A

To be neutral, accounting information must be free of bias.

47
Q

If a firm changes the valuation approach used to determine fair value, how would the amount of change in fair value resulting from the change in valuation approach be reported?

A

As a change in accounting estimate, reported in current income as income from continuing operations.

48
Q

Product Market Share

A

Is not a required disclosure or required component of 10-k filing. The company may chose to voluntarily present this information, but its not required.

49
Q

A multi-step income statement is prepared because:

A

Because it is more meaningful presentation of revenue and expenses.

50
Q

What is the purpose of reporting comprehensive income?

A

To summarize all changes in equity from nonowner sources.

FAR (2 decks)

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