Financial Accounting and Reporting concepts tested on the CPA FAR exam section.
44 cards · basic cards · AI-written, checked twice. Edit anything.
- What is the fundamental accounting equation?
Show answer
Assets = Liabilities + Equity- What are the two fundamental qualitative characteristics of useful financial information under the FASB conceptual framework?
Show answer
Relevance and faithful representation- What are the three components of relevance in the FASB conceptual framework?
Show answer
Predictive value, confirmatory value, and materiality- What are the three components of faithful representation?
Show answer
Completeness, neutrality, and freedom from error- What are the four enhancing qualitative characteristics of financial information?
Show answer
Comparability, verifiability, timeliness, and understandability- What does the going concern assumption presume about an entity?
Show answer
That the entity will continue operating for the foreseeable future- What does the materiality principle allow a preparer to do?
Show answer
Omit or misstate information that would not influence a user's decisions- What does the full disclosure principle require?
Show answer
That all information relevant to users' decisions appear in the statements or notes- What does the conservatism (prudence) concept favor when uncertainty exists?
Show answer
Anticipating losses but not gains- Under the ASC 606 revenue recognition model, step one is to ____.
Show answer
identify the contract with a customer- Under the ASC 606 revenue recognition model, step two is to ____.
Show answer
identify the performance obligations in the contract- Under the ASC 606 revenue recognition model, step three is to ____.
Show answer
determine the transaction price- Under the ASC 606 revenue recognition model, step four is to ____.
Show answer
allocate the transaction price to the performance obligations- Under the ASC 606 revenue recognition model, step five is to ____.
Show answer
recognize revenue when or as each performance obligation is satisfied- Under FIFO inventory costing, which units are assumed to be sold first?
Show answer
The oldest units purchased
FlashKeepers