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What are the sources of GAAP that have the highest level of authority? BOSSII
- Accounting Research Bulletins
- APB Opinions
- FASB Statements of Financial Accounting Standards
- FASB Staff Position
- FASB Interpretations
- FASB Statement 133 Implementation Issues
What are three objectives of financial reporting by business enterprises?
- To Provide:
- * Information useful in investing, credit, and simular decisions
- * Information useful in accessing cash flow prospects
- * Information about enterprise resources, claims to those resourses, and changes in them
Name two pervasive constraints in the hierarchy of accounting qualities.
- Benefit > Cost
Name the two primary decision-specific qualities of useful accounting information.
Relevan and Reliability
Name three elements of Releance.
"Passing Feels Great"
- Predictive Value
- Feedback Value
Name the three elements of reliability.
- Representational Faithfulness
Name the two secondary characteristics of accounting informaiton.
Comparability and Consistency
What should a full set of financial statements include?
- Statement of Financial Position (The Balance Sheet)
- Statement of Earnings ( Income Statement)
- Statement of Comprehensive Income
- Statement of Cash Flow
- Statement of Changes in Owner's Equity
What is the difference between relization and recognition?
- Realization: When sold and converted to cash (or claims to cash (AR))
- Recognition: When record in the financial statements
List the ten elements of financial statements.
- Comprehensive Income
- Equity ( of Net Assets)
- Investments by Owners