Faithful representation - Study guides, Class notes & Summaries

objective of financial reporting - provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors general-purpose financial statements - provide financial reporting information to a wide variety of users accrual basis accounting - ensures that a company records events that change its financial statements in the periods in which it receives or pays cash generally accepted accounting principles (GAAP) - common s...

>>>>>> FRAMEWORKS What if not followed IAS or IFRS? correct answer: Not True and Fair = UNETHICAL Why PRINCIPLES not RULES? correct answer: Principles harder to circumvent Why have a FRAMEWORK? correct answer: Provides guidances for standards setters Gives guidance where no standards exist Helps all parties with intrerpretation 2 x Useful qualities of financial information correct answer: RELEVANCE = Influences Decisions FAITHFUL REPRESENTATION = Complete, Ne...

ACC 201 EXAM 1-ROESCHLEY, UKY QUESTIONS AND ANSWERS Which of the following best defines accounting? A. Accounting i the process of recording and reporting stock prices for investors. B. Accounting is used for the internal record keeping of a business only. C. Accounting is the process of reconciling financial data with investor perceptions. D. Accounting is the process of recording and reporting financial information - Answer- D. Accounting is the process of recording and reporting financ...

Solution Manual For Discovering Engineering Design in the 21st Century 1st Edition by Bradley Striebig-1.1 What are you currently doing, and why? Solution Answers may vary. Answers may include but are not limited to current work status, current daily habits, or current hobbies followed by an explanation as to why you are engaging in such activity/activities. Describe how the U.S. Bureau of Labor Statistics defines an engineer and an engineering technician (or engineering technologies) by r...

Accounting 100 Exam 1 Questions with Correct Answer Monetary Unit Assumption - Answer-Items not easily quantified in dollar terms are not reported in the financial statements. Faithful Representation - Answer-Accounting information must be complete, neutral, and free from error. Economic Entity Assumption - Answer-Personal transactions are not mixed with the company's transactions. Cost Constraint - Answer-The cost to provide information should be weighed against the benefit that user...

providers of financial information - Answer profit oriented companies, not for profit entities, households external users of financial information - Answer investors, creditors, employees, banks, labor unions, customers, suppliers, gov regulatory agencies conceptual framework - Answer underlying structure for the development of accounting standards GAAP - Answer generally accepted accounting principles- body of accounting standards FASB - Answer financial accounting st...

ACCA SBR Exam Questions with Correct Answers What if not followed IAS or IFRS? - Answer-Not True and Fair = UNETHICAL Why PRINCIPLES not RULES? - Answer-Principles harder to circumvent Why have a FRAMEWORK? - Answer-Provides guidances for standards setters Gives guidance where no standards exist Helps all parties with intrerpretation 2 x Useful qualities of financial information - Answer-RELEVANCE = Influences Decisions FAITHFUL REPRESENTATION = Complete, Neutral, No Errors Wha...

FAC_1502 Course Notes. STUDY UNIT 1 The Conceptual Framework for Financial Reporting What is the Framework?  Sets out the objectives & concepts  Provides a theoretical background or general frame of reference Purpose of the Framework:  Assist standard setting bodies;  Assist preparation of financial statements;  Assist auditors;  Assist other users of financial statements. The Conceptual Framework for Financial Reporting The Objective of general purpose f...

Intermediate Accounting Exam #1providers of financial information - correct answer profit oriented companies, not for profit entities, households external users of financial information - correct answer investors, creditors, employees, banks, labor unions, customers, suppliers, gov regulatory agencies conceptual framework - correct answer underlying structure for the development of accounting standards GAAP - correct answer generally accepted accounting principles- body of accountin...

Accounting is the information system that A. measures business activity. B. communicates the results to decision makers. C. processes information into reports. D. All of the above all of the above Which of the following is not an external user of a business's financial information? A. Taxing authorities B. Customers C. Employee D. Investors employee Generally Accepted Accounting Principles (GAAP) are currently formulated by the A. Financial Accounting Standards Board (FASB). B. Securities and...