Ch 11 - Financial Reporting Concepts Flashcards

1
Q

What is realizable value?

A

The amount that a business can reasonably expect to collect in cash from that asset.

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2
Q

Fair value

A

measure of the current value of an asset or liability at the reporting date. “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants”.

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3
Q

Going Concern Assumption

A

Assumes that the company will continue operating for the foreseeable future; that is, long enough to carry out its existing objectives and commitments.

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4
Q

Monetary Unit Concept

A

Means money is the common denominator of economic activity.

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5
Q

Periodicity Concept

A

Time period concept. Guides businesses in dividing up their economic activities into distinct time periods

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