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What are the Fundamental Qualitative Characteristics?
2) Faithful representation
What are the Enhancing Qualitative Characteristics?
What are the 3 ingredients information must have to be Relevant?
1) Predictive value
2) Feedback value
What are the 3 ingredients information must have to be a faithful representation?
3) Free from Error
What is the over-reaching constraint on all qualitative characteristics?
What are the objectives of financial reporting?
1) Balance Sheet provide
information about the entity's financial position
2) Income statement provides
information about the entity's performance
3) Cash flow stmt provides
information about the entity's cash flows
tells us about management's performance
List the 10 Key elements that make up all financial statements
6) Comprehensive income - Net income + DENT
List the 8 accounting rules and concepts that apply to all financial statement elements.
6) Full disclosure
Define revenues and expenses
Inflows and outflows from normal ongoing operations
Define gains and losses
Not necessarily normal ongoing operations - (i.e. sale of equipment)
Identify the difference between recognition and realization
Recognition happens when recorded, realization happens when sold and cash is realized
An unrealized gain/loss on a trading security will be recorded where?
An unrealized gain/loss on an available-for-sale security will be recorded where?
Balance Sheet, in comprehensive income ("N" in DENT)
FASb Conceptual Framework Questions