FAR Module 9A
Card Set Information
FAR Module 9A
CPA Exam FAR
Basic Theory and Financial Reporting A. and C.
Accounting Standards Codification (ASC)
The single source for all US GAAP.
Recognition precedes cash receipt/expenditure
Expenses are regognized as related revenues are recognized.
Recognizes income when sach is received and expenses when cash is disbursed.
The amount of cash, or its equivalent, that would be paid if the same asset were to be acquired currently.
Current Market Value
The amount of cash, or its equivalent, that could be obtained by selling as asset in orderly liquidation.
Cash receipt/expenditure precedes accrual-basis recognition.
The price that would be received to sell an sset or paid to transfer a liability in an orderly tansaction between market participants at the measurement date under current market conditions.
The amount of cash, or its equivalent, paid to aquire an asset.
Revenue is recognized as cash is collected.
Net Realizable Value
The nondiscounted amount of cash, or its equivalent, into which an asset is expected to be converted during the normal course of business less direct costs to make the conversion.
Costs not particularly or conveniently assignable to a product.
The current measure of an estimated future cash inflow or outflow, discounted at an interest rate for the number of periods between today and the date of the estimated cash outflow.
Costs which can be associated with particular sales.
When related assets received or held are readily convertible into known amounts of cash or claims to cash.
Market place participants prefer situations with less uncertainty relative to an expected outcome.
The costs incurred during the course of undertaking on-time activities related to opening a new facility.
The change is accounted for in the current period and future periods.
The process of revising previously issued financial statements to correct an error.
The application of a different accounting principle to previously issued financial statements, as if that principle had always been used.