part 1. far

Question 1

components of relevance

Answer 1

predictive value

Question 2

increases in net assets from incidental or peripheral transactions affecting an entity

Answer 2

gains

Question 3

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

Answer 3

realization

Question 4

enhancing qualitative characteristic of relevance and faithful representation

Answer 4

comparability

Question 5

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 constrains and materiality threshold

Answer 5

recognition

Question 6

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

Answer 6

comprehensive income

Question 7

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

Answer 7

revenues

Question 8

the amount of cash, or its equivalents that could be obtained by selling an asset in orderly liquidation

Answer 8

current market value

Question 9

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

Answer 9

predictive value

Question 10

a performance measure concerned primarily with cash-to-cash cycles

Answer 10

earnings