FAR1

Question 1

SFAC

Answer 1

Statement of Financial Accounting Concepts

Question 2

Objective of Financial Reporting

Answer 2

To provide information for primary users of financial statements that lead to better decision making

Question 3

Who are the primary users of the General purpose financial statements ?

Answer 3

Creditors
Potential investors
investors
employee
Management
Government
Regulators

Question 4

What are the qualitativr charactaristics of financial statements

Answer 4

Relevance

Faithful representation

Question 5

elements OF RELEVANCE

Answer 5

Confirmatory Values
Predictive Values
Material information

Question 6

Faithful represenation

Answer 6

Completeness
Neutral
Free from error

Question 7

WHAT ARE ENHANCING QUALITITAVE CHARACTRASTICS FOR FINANCIAL INFORMATION

Answer 7

comparable
verifiable
Timely
understandable