FAR1C2 C Flashcards
How does information about priorities and payment requirements of existing claims can help users?
It can help users to predict how future cash flows will be distributed among those with a claim against the reporting entity.
How does information about priorities and payment requirements of existing claims can help users?
It can help users to — how future cash flows will be — among those with a — against the — entity.
It can help users to predict how future cash flows will be distributed among those with a claim against the reporting entity.
What general purpose financial reports provide in terms of changes in economic resources and claims?
It provides — about the — of — and other events that — the economic — and —. Changes and economic resources and claims results from financial — and from other — or —, such as issuing — or equity —.
It provides information about the effects of transactions and other events that change the economic resources and claims. Changes and economic resources and claims results from financial performance and from other events or transactions, such as issuing debt or equity instruments.
What is financial performance?
The financial performance of an entity comprises —, — and net – or — for a period of time. In other words, financial performance is the — of — earned by the entity through the efficient and effective use of its —. The financial performance of an entity is also known as — of — and is portrayed in the — — and statement of — —.
The financial performance of an entity comprises revenue, expenses and net income or loss for a period of time. In other words, financial performance is the level of income earned by the entity through the efficient and effective use of its resources. The financial performance of an entity is also known as results of operations and is portrayed in the income statement and statement of comprehensive income.
It comprises revenue, expenses and net income or loss for a period of time. In other words, it is the level of income earned by the entity through the efficient and effective use of its resources. It is also known as results of operations and is portrayed in the income statement and statement of comprehensive income.
Financial performance
It comprises revenue, expenses and net income or loss for a period of time. In other words, it is the level of income earned by the entity through the efficient and effective use of its resources.
Financial performance
It is also known as results of operations and is portrayed in the income statement and statement of comprehensive income.
Financial performance
Explain four (4) usefulness of financial performance.
1) Information about financial performance helps users to — the — that the entity has — on the economic —.
2) Information about the return the entity has produced provides an — of how — management has — its responsibilities to make — and — use of the entity’s economic —.
3) Information about past financial performance is usually helpful in — the — — on the entity’s economic —.
4) Information about financial performance during a period is useful in — the entity’s ability to — future cash — from —.
1) Information about financial performance helps users to understand the return that the entity has produced on the economic resources.
2) Information about the return the entity has produced provides an indication of how well management has discharged its responsibilities to make efficient and effective use of the entity’s economic resources.
3) Information about past financial performance is usually helpful in predicting the future returns on the entity’s economic resources.
4) Information about financial performance during a period is useful in assessing the entity’s ability to generate future cash inflows from operations.
What is accrual accounting?
It depicts the effects of — and other — and — on an entity’s economic — and — in the periods in which those effects — even if the resulting cash receipts and payments occur in a — period. In other words, under the accrual basis, the — of — and other — are recognized when they — and not as cash is — or —. It simply stated, accrual accounting means that income is — when — regardless of when — and — is recognized when — regardless of when —.
It depicts the effects of transactions and other events and circumstances on an entity’s economic resources and claims in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period. In other words, under the accrual basis, the effects of transactions and other events are recognized when they occur and not as cash is received or paid. It simply stated, accrual accounting means that income is recognized when earned regardless of when received and expense is recognized when incurred regardless of when paid.
It depicts the effects of transactions and other events and circumstances on an entity’s economic resources and claims in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period. In other words, under the accrual basis, the effects of transactions and other events are recognized when they occur and not as cash is received or paid. It simply stated, accrual accounting means that income is recognized when earned regardless of when received and expense is recognized when incurred regardless of when paid.
Accrual accounting
It depicts the effects of transactions and other events and circumstances on an entity’s economic resources and claims in the periods in which those effects occur even if the resulting cash receipts and payments occur in a different period.
Accrual accounting
In other words, under this basis, the effects of transactions and other events are recognized when they occur and not as cash is received or paid.
Accrual accounting
It means that income is recognized when earned regardless of when received and expense is recognized when incurred regardless of when paid.
Accrual accounting
How does information about financial performance measured?
It is measured in accordance with — —. Because it provides a — — for — — and — — than — solely about — — and — during a period.
It is measured in accordance with accrual accounting. Because it provides a better basis for assessing past and future performance than information solely about cash receipts and payments during a period.
What are the four (4) limitations of financial reporting?
1) General purpose financial reports do not and cannot provide all of the — that existing and potential investors, lenders and other creditors —.
These users need to consider — — from other —, for example, general economic conditions, political events and industry outlook.
2) General purpose financial reports are not — to show the — of an — but the reports — — to help the primary users — the value of the entity.
3) General purpose financial reports are intended to — — — to users and — accommodate every — for —.
4) To a large extent, general purpose financial reports are based on — and — rather than — —.
1) General purpose financial reports do not and cannot provide all of the information that existing and potential investors, lenders and other creditors need.
These users need to consider pertinent information from other sources, for example, general economic conditions, political events and industry outlook.
2) General purpose financial reports are not designed to show the value of an entity but the reports provide information to help the primary users estimate the value of the entity.
3) General purpose financial reports are intended to provide common information to users and cannot accommodate every request for information.
4) To a large extent, general purpose financial reports are based on estimate and judgement rather than exact depiction.
What are accounting assumptions?
They are the basic — or fundamental — on which the accounting process is —. They are also known as —. They serve as the — of accounting in order to — — but rather — the — and — of the financial statements.
They are the basic notions or fundamental premises on which the accounting process is based. They are also known as postulates. They serve as the foundation of accounting in order to avoid misunderstanding but rather enhance the understanding and usefulness of the financial statements.
They are the basic notions or fundamental premises on which the accounting process is based. They are also known as postulates. They serve as the foundation of accounting in order to avoid misunderstanding but rather enhance the understanding and usefulness of the financial statements.
Accounting assumptions
They are the basic notions or fundamental premises on which the accounting process is based.
Accounting assumptions
They are also known as postulates.
Accounting assumptions
They serve as the foundation of accounting in order to avoid misunderstanding but rather enhance the understanding and usefulness of the financial statements.
Accounting assumptions
What is the only assumption mention by the Conceptual Framework for Financial Reporting?
— —. However, implicit in accounting are the basic assumptions of — —, — —, and — —.
Going concern. However, implicit in accounting are the basic assumptions of accounting entity, time period, and monetary unit.
What going concern or continuity assumption means?
It means that in the absence of — to the —, the accounting entity is viewed as — in operation —. In other words, the financial statements are normally prepared on the — that the entity will — in — for the — future.
It means that in the absence of evidence to the contrary, the accounting entity is viewed as continuing in operation indefinitely. In other words, the financial statements are normally prepared on the assumption that the entity will continue in operations for the foreseeable future.
It means that in the absence of evidence to the contrary, the accounting entity is viewed as continuing in operation indefinitely. In other words, the financial statements are normally prepared on the assumption that the entity will continue in operations for the foreseeable future.
Going concern or continuity assumption means
What is going concern postulate?
It is the very — of the cost —. Thus, assets are normally recorded at —. As a rule, market values are —. However, some new standards require — of certain — at — —./ If there is evidence that the entity would experience large and persistent — or that the entity’s operations are to be —, the going concern assumption is —. In this case, the users of the statements will have a great interest in the amount of — that will be generated from the entity’s — in the — term.
It is the very foundation of the cost principle. Thus, assets are normally recorded at cost. As a rule, market values are ignored. However, some new standards require measurement of certain assets at fair value./ If there is evidence that the entity would experience large and persistent losses or that the entity’s operations are to be terminated, the going concern assumption is abandoned. In this case, the users of the statements will have a great interest in the amount of cash that will be generated from the entity’s assets in the short term.
