Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events
Residual interest in the assets of an entity that remains after deducting its liabilities.
Change in equity of an entity during a period from transaction and other events and circumstances from nonowner sources.
Increases in equity from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments from owners.
Decrease in net assets of a particular enterprise resulting from transferring assets, rendering services, or incurring liabilities by the enterprise to owners.
Distribution to owners
What does AICPA stand for?
American Institute of Certified Public Accountants
What does PCAOB stand for?
Public Company Accounting Oversight Board
What does FASAC stand for?
Financial Accounting Standards Advisory Council
Members of the FASB are allowed to maintain their current job as well as serving on the Board. True or false?
An Accounting Standard Update requires a majority vote by board members in order to pass. True or false?
The FASB has released 9 Statements of Financial Accounting Concepts. True or false?
The FASB’s Codification has information on all types of transactions. True or false?
When information is capable of making a difference in a decision.
If UPS restates a previous years financial statement to correct a prior expectation, which ingredient of Relevance are they following?
The 3 ingredients of Faithful Representation are? (CNF)
3. Free from error
Materiality is a fundamental quality. True or false?
International Accounting Standards are exactly the same as US GAAP. True or false?
What is the purpose of an Emerging Issue Task Force Statement and give a situation where one might be given?
Give guidance on how to account for new and unusual financial transactions.
The materiality threshold used by companies is set by the FASB. True or false?
Name 3 different groups that would put pressure on the FASB to make decisions in a certain way.
1. Government Agencies
2. Business Entities
Name 3 changes the Sarbanes-Oxley Act created? (ESC)
1. Established PCAOB
2. Stronger independence by requiring audit partner rotations
3. CEO&CFO have to sign off on fin. stmts.
Comprehensive income does not include... or...
owner investments, distribution to owners
Statement of retained earnings long formula.
+ CAP, net of tax
+ PPA, net of taxAdjusted beg. bal
- DividendsEnd balance
All changes in SE during the period.
The process of associating income tax expense with related income.
Intraperiod tax allocation
3 things involved with intraperiod tax allocation. (IDP)
1. Income from continuing operations
2. Discontinued operations
The amount of time until an asset is realized or otherwise converted into cash.
The ability of an enterprise to take effective action to alter the amounts and timing of cash flow.
2 uses of a balance sheet. (PA)
1. Provides info related to liquidity and fin. flexibility
2. Assesses risk and predicts future cash flows
3 limitations of a balance sheet. (FJF)
1. Fails to reflect current info
3. Fails to include items that can't be measured
Probable future economic benefits.
Cash and other assets expected to be converted into cash, sold, or consumed either in 1 year or in the operating cycle, whichever is longer.
Short term investments that mature in 3 months or less.
3 types of ST invenstments. (THA)
3. Available for sale
Current assets are presented in the order of...
What 2 ST investments are reported at FMV?
2. Available for sale
What ST investment is reported at amortized cost?
Debt or equity securities which management intends to sell in the ST to maximize profits.
Trading ST investments
Debt securities which management intends to hold until maturity.
Held-to-maturity securities are... assets, unless maturity is 1 year or less.
Trading maturities are always... assets.
Available for sale maturities may be a current or long-term asset depending on...
Receivables are reported at...
net realizable value.
Formula for net realizable value.
AR - AFDA
Inventories are reported at...
With inventories, the... must be disclosed.
4 types of noncurrent assets. (LPIO)
1. LT investments
3. Intangible assets
4. Other assets
Intangible assets are recorded when...
Proper classification of assets depends on what 2 things? (NU)
1. Nature of item
2. Use to which it is put
Liabilities that will be paid within a year but are still reported as LT liabilities. (SD)