SFAC

Question 1

SFAC 4

Answer 1

Overall purposes and related objectives of financial reporting by non businesses

Question 2

SFAC 6 - capital maintenance concept

Answer 2

Recovery of cost; separation of return on capital from return of capital

Question 3

SFAC 6 - financial capital concept

Answer 3

Effects of price changes on assets held and liabilities owed are recognized as “holding gains and losses” and included in return on capital

Question 4

SFAC 6 - physical capital concept

Answer 4

Effect of price changes are recognized as “capital maintenance adjustments” as a separate element of equity and would not be included in return on capital

Question 5

SFAC 6 - recognition

Answer 5

Make card fundamental recognition criteria

When are revenues & gains recognized
Expenses & losses

Also 7 accepted criteria for revenue recognition

Question 6

SFAC 6, Elements of the Financial Statements

Answer 6

Make card