objectives and qualitative characteristics

Question 1

Replacement cost

Answer 1

amt of $ that would hbave to be paid if the came asset were acquired currently

Question 2

Comphensive Income

Answer 2

SFAC6 over the life of an entity CI=the net of its cash receipt and cash outlays, excl $ invested by its owners or distributed to them

Question 3

Conceptual framework outline

Answer 3

Intended to stablish the objectives and concepts for use in developing standarts of financial accounting and reporting.
framework does not constitute gaap, is constitution for developing GAAP
1.- Objective of financial reporting
2.- qualitative Characteristics for Acct information
3.- accounting assumptions
4.- Basic accounting assumptions
5.- cost Constraint
6.- Elements of financial stmt

Question 4

objective for financial reporting is

Answer 4

-provide info that is useful to economic decisions. a
bout entity current and future users of the financial Stmts who are making credit and investment decisions
-usefuel info includes

Question 5

Primary qualitative characteristics

Answer 5

For info to be useful has to be relevant and faithful

1. • Relevance PCM 2.- faithful representation(CNF
     a. Predictive Value a. Completness
     b. confimatory Value b. Neutrality
     c. Materiality f. Free from error

Question 6

Enhacing Qualitative Characteristics

Answer 6

CVTU

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

Question 7

Relevance over Faithful representation

Answer 7

Depr, bad debt exp, pension estimates

Question 8

Faithful representation over Relevance

Answer 8

use of historical cos as a valuation base