1
Q
Steps FASB uses to establish GAAP
A
- Project added to agenda
- Conduct research & issue discussion memorandum
- Public hearing
- Issue exposure draft
- Modify exposure draft
- Finalize and issue Accounting Standards Update
2
Q
Accrual to Cash
A
^Cash = ^L + ^E - ^OA
3
Q
Cash to Accrual
A
^E = ^A - ^L
4
Q
Note about Allowances and cash method
A
Do not net allowances against receivables under the cash method
5
Q
Faithful Representation
A
- Complete
- Neutral
- Free from error
6
Q
Relevance
A
- Helps predict
- Helps confirm
- Material
7
Q
Enhancing Qualities
A
- Comparability
- Verifiability
- Timeliness
- Understandability
Superfast CPA
flashcards
Decks in class (20)
# Cards
-
Principles7
-
Financial Statements25
-
Cash & A/R17
-
Inventory17
-
Property Plant & Equipment8
-
Equity & Debt Investments9
-
Intangible Assets8
-
Payables & Accrued liabilities5
-
Long Term Debt12
-
Owner's Equity24
-
Revenue Recognition6
-
Stock rights0
-
Accounting for changes & errors4
-
Business Combinations9
-
Financial Instruments12
-
Foreign Currency Transactions2
-
Leases17
-
Not-for-Profit12
-
Governmental Accounting32
-
Test Bank NOtes8
