SFAC Guidelines

Question 1

SFAC 8

Answer 1

Names the primary users of financial reports
Financial information should be presented using accrual based accounting
Names the qualitative characteristics

Question 2

SFAC 4

Answer 2

Names characteristics to determine between business and non-business
-resources come from contributions and grants
-revenues are other than to provide goods and services
-they lack ownership interests that can be sold, transferred, or allow a claim on resources upon liquidation

Question 3

SFAC 5….(clue 5 statements)

Answer 3

A full set of financial statements includes:
Statement of Financial Position
Statement of Earnings (I.S.)
Statement of Comprehensive Income
Statement of Cash Flows
Statement of Changes in Owners Equity

Question 4

Recognition criteria

Answer 4

The process of formally recording it in the financial statements
It can be:
Defined, measured, it’s relevant (meaningful to the financial statements), and reliable (faithful,verifiable)