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What are the sources of GAAP that have the highest level of authority? BOSSII
tatements of Financial Accounting Standards
FASB Statement 133
What are three objectives of financial reporting by business enterprises?
* 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"
Name the three elements of reliability.
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?
: When sold and converted to cash (or claims to cash (AR))
: When record in the financial statements
List the ten elements of financial statements.
Equity ( of Net Assets)
Investments by Owners
CPA EXAM: Financial Part 1