Standards and Conceptual Framework Flashcards
The characteristic that enhances relevance and faithful representation is?
Timeliness
Under the FASB conceptual framework , what pairs a fundamental qualitative characteristic and its component?
Relevance and materiality.
Relevance is a fundamental qualitative characteristic and materiality is a component of relevance.
What is the primary objective of financial reporting?
To provide information that is useful to for economic decision making.
The financial accounting concepts that refers to the characteristic 2of accounting information that provide predictive value to users as a quality of?
Relevance
How does a sale of a fixed asset recognized in the income statement?
When a fixed asset is sold, the gain or loss is recognized as part of income from continuing operations.
What is Freight-in and Freight-out?
“Freight-in” is a part of “Cost of goods sold”
“Freight-out”- is a selling expense