FAR-1

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Author:
kindred1845
ID:
209226
Filename:
FAR-1
Updated:
2013-03-24 14:43:27
Tags:
Framework
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Description:
FASb Conceptual Framework Questions
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  1. What are the Fundamental Qualitative Characteristics?
    • 1) Relevant
    • 2) Faithful representation
  2. What are the Enhancing Qualitative Characteristics?
    • 1) Comparability
    • 2) Verifiability
    • 3) Timeliness
    • 4) Understandability
  3. What are the 3 ingredients information must have to be Relevant?
    • 1) Predictive value
    • 2) Feedback value
    • 3) Materiality
  4. What are the 3 ingredients information must have to be a faithful representation?
    • 1) Neutrality
    • 2) Completeness
    • 3) Free from Error
  5. What is the over-reaching constraint on all qualitative characteristics?
    Cost/benefit constraint
  6. What are the objectives of financial reporting?
    • 1) Balance Sheet provide direct information about the entity's financial position
    • 2) Income statement provides direct information about the entity's performance
    • 3) Cash flow stmt provides direct information about the entity's cash flows
    • 4) Indirectly tells us about management's performance
  7. List the 10 Key elements that make up all financial statements
    • 1) Assets
    • 2) Liabilities
    • 3) Equity
    •     4) Contributions
    •     5) Distributions
    •     6) Comprehensive income - Net income + DENT
    •        7) Revenues
    •        8) Expenses
    •        9) Gains
    •       10) Losses
  8. List the 8 accounting rules and concepts that apply to all financial statement elements.
    • 1) Consistency
    • 2) Conservatism
    • 3) Cost/benefit
    • 4) Matching
    • 5) Allocation
    • 6) Full disclosure
    • 7) Recognition
    • 8) Realization
  9. Define revenues and expenses
    Inflows and outflows from normal ongoing operations
  10. Define gains and losses
    Not necessarily normal ongoing operations - (i.e. sale of equipment)
  11. Identify the difference between recognition and realization
    Recognition happens when recorded, realization happens when sold and cash is realized
  12. An unrealized gain/loss on a trading security will be recorded where?
    Income Statement
  13. An unrealized gain/loss on an available-for-sale security will be recorded where?
    Balance Sheet, in comprehensive income ("N" in DENT)

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