What are the statements of financial accounting concepts intended to establish?

17.What are theStatements of Financial Accounting Conceptsintended to establish?The objectives and concepts for use in developingstandards of Financial Accounting and Reporting18.According toFASB Conceptual Framework, the objectivesof Financial Reporting for businessenterprises are based on?19.QualitativeCharacteristics:Second Level Second Level ofConceptual Framework, Fundamental Quality-20.QualitativeCharacteristics:Second Level FundamentalQuality-Relevance(Predictive Value)Financial Information has predictive value if it hasvalues as an input to predictive processes used byinvestors to form their own expectations about thefuture.21.FinancialInformationis capable of making a difference when it haspredictive value, confirmatory value or both.22.QualitativeCharacteristics:Second Level FundamentalQuality-Relevance(Confirmatory Value)Relevant information also helps users confirm orcorrect prior expectations.

24.The underlyingtheme of the conceptual framework is25.Enhancing

qualities include all of the following exceptverifiability.timeliness.comparability.***materiality.****26.In order to berelevant, financial information must have allof the following ingredients of fundamental

qualities except***be free from error.****

27.Accounting information is considered to berelevant when itis capable of making a difference in a decision.28.Which of the following is an ingredient of thefundamental quality of faithfulrepresentation?

29.QualitativeCharacteristics:Second Level FundamentalQuality-Faithful Representationa.Completeness, Naturality, Free from Error.

***Faithful Representation means that the

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2M95F
QUESTION:

One of the elements of a financial statement is comprehensive income. Comprehensive income excludes changes in equity resulting from which of the following?

1. Loss from discontinued operations.
2. Prior period error correction.
3. Dividends paid to stockholders.
4. Unrealized loss on investments in non-current marketable equity securities.

According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on

1. Generally accepted accounting principles
2. Reporting on management's stewardship.
3. The need for conservatism.
4. The needs of the users of the information.

What are the Statements of Financial Accounting Concepts intended to establish?

1. Generally accepted accounting principles in financial reporting by business enterprises.
2. The meaning of "Present fairly in accordance with generally accepted accounting principles."
3. The objectives and concepts for use in developing standards of financial accounting and reporting.
4. The hierarchy of sources of generally accepted accounting principles.

According to Statements of Financial Accounting Concepts, neutrality is an ingredient of

According to the FASB conceptual framework, which of the following statements conforms to the realization concept?

1. Equipment depreciation was assigned to a production department and then to product unit costs.
2. Depreciated equipment was sold in exchange for a note receivable.
3. Cash was collected on accounts receivable.
4. Product unit costs were assigned to cost of goods sold when the units were sold.

C. Comprehensive income includes all changes to equity except those resulting from investments by owners of distributions to owners, including dividends to stockholders. A loss on discontinued operations is included in both net income and comprehensive income. Prior period error corrections and unrealized losses on investments in noncurrent marketable equity securities are both reported as adjustments to stock holders' equity, but are also part of comprehensive income.

Question 2M95F

D. One of the objectives of financial reporting identified by SFAC No. 1 is to provide information that is useful to users in their decision making. Response A is incorrect because GAAP is derived from the objectives. Response B is incorrect because financial statements report on the business entity, not the management. Management's stewardship may only be indirectly inferred from the financial statements. Response C is incorrect because conservatism is a fundamental concept of SFAC No. 1.

Question 1N95F

C. Statements of Financial Accounting Concepts (SOFACs) establish a conceptual framework for accounting which includes the objectives and concepts used in developing standards of financial accounting and reporting. Generally accepted accounting principles (GAAP) are based upon the conceptual framework, and must be followed in order for the financial statements to be presented fairly in accordance with GAAP. When there are two or more principles that may apply to a given situation, the hierarchy of sources of GAAP provides guidance as to which principle or principles should be given priority.

Question 2M94F

B. Neutrality, along with representational faithfulness and verifiability are the ingredients of reliability, one of the primary qualitative characteristics. The other primary qualitative characteristic is relevance, which includes timeliness, feedback value, and predictive value as the three ingredients.

Question 1N94F

B. Realization occurs when noncash resources and rights are converted into money or claims to money. This would be the case when equipment is sold for a note receivable. Assigning of costs is a form of allocation. Realization occurs at the time that sales of merchandise are made in exchange for accounts receivable, not when the receivables are collected.

Question 6N93T

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What are the statement of financial accounting concept intended to establish?

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