The Conceptual Framework Flashcards
1
Q
Objective
A
To provide financial information that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.
2
Q
Financial Information
A
General purpose financial reports which provide information to the entity’s economic resources, claims, and changes in resources and claims
3
Q
Qualitative Characteristics
A
Fundamental: Relevance and Faithful Representation
Enhancing: Comparability, Verifiability, Timeliness, Understandability
4
Q
Constraint and Assumption
A
Cost Constraint, Accrual Accounting, Going Concern
5
Q
Elements
A
Assets, Liabilities, Equity, Income, Expenses
