FASB & Standard Setting Flashcards
1
Q
How many yrs do FASB Members serve?
A
7 members serve 5 yr (renewable for one term)
2
Q
Committee involved in formation of FASB
A
Wheat Committee
3
Q
When a consensus of the 15 members of FASB’s Emerging Issues Task Force (EITF) is reached on an issue, what is next?
A
No further action by the FASB is required. EITF pronouncements are included in GAAP.
4
Q
The collection of Statements of Financial Accounting Concepts (SFACs), a “constitution” or underlying set of theoretical concepts in its deliberations. (Not GAAP)
A
FASB’s Conceptual Framework
5
Q
What type of account is a deferred revenue?
A
Liability account
6
Q
Accrual vs. Deferral entires
A
Accrual - accruing cash owed or to be paid as an asset or liab.
Deferral - deferring recognition of exp. or rev. as an asset or liab.
