FAR NOTES

Question 1

Enhancive Qualitive Characteristics are

Answer 1

CUT-LIKE-V Comparability, understandability, timeliness, and verifiability

Question 2

FAC, neutrality is an ingredient of

Answer 2

Roger is never on the FENC. Faithful representation. Relevance consist of predictive value and confirmatory value or both (Roger is P.C.)

Question 3

According to the IASB Framework, the qualitive characteristic of relevance includes

Answer 3

Predictive value, confirmatory value and materiality, very similar to FASB. Roger is P.C., but also materialistic

Question 4

According to the FASB framework, which of the following relates to both relevance and faithful representation

Answer 4

Comparability

Question 5

According to the FASB framework, the process of reporting an item in the F/S of entity is

Answer 5

Recognition

Question 6

Objectives of financial reporting include

Answer 6

Direct information about an entity’s cash flow, financial position, and performance and indirect information about management’s performance

Question 7

The objectives of financial reporting for business enterprises are based on

Answer 7

The needs of the users of the information

Question 8

Physical capital maintenance concept, gains and losses are recognized only when assets are disposed of or liabilities settled. Financial capital is increased or decreased both when assets are disposed of or liabilities are settled, and when assets or liabilities change in value. Comprehensive income, which includes both net income and other comprehensive income, applies the financial capital approach since both gains and losses resulting from disposals and settlements are included, as well as holding gains and losses.

Answer 8

Physical capital maintenance and Financial capital concept.

Question 9

According to the FASB framework, en entity’s revenue may result from

Answer 9

An increase in a an asset or decrease in a liability from primary operations will result in revenue.

Question 10

Comprehensive income

Answer 10

Includes all changes to equity other than owner-related items.

Question 11

Cash Equivalent

Answer 11

A cash equivalent is any security that is convertible into cash within 90 days.

Question 12

To meet the disclosure requirements related to risks and uncertainties

Answer 12

An entity will disclose which of the use of estimates and the concentrations of risk.