Financial and managerial Accounting 2025
Advanced Financial and managerial accounting exam based
Questions and guaranteed answers
11th edition 2025
Revenues - ✔✔✔inflows or other enhancements of assets of an entity or settlements of its liabilities during
a period from delivering or producing goods, rendering services, or other activities that constitute the
entities ongoing major/central functions
Expenses - ✔✔✔outflows or other using up of assets or incurrences of liabilities during a period from
delivering or producing goods, rendering services, or other activities that constitute the entities ongoing
major or central operations
Gains - ✔✔✔increases in equity from peripheral or incidental transactions of an entity
Losses - ✔✔✔represent decreases in equity arising from peripheral or incidental transactions of an entity
4 underlying assumptions - ✔✔✔economic entity, going concern, monetary unit, periodicity
Economic entity - ✔✔✔economic events can be identified with an economic entity
External users of financial information - ✔✔✔investors, creditors, employees, banks, labor unions,
customers, suppliers, government regulatory agencies
Relevance - ✔✔✔3 parts: predictive, confirmatory value, materiality
Pertinent to a decision at hand
@pg 1
, Financial and managerial Accounting 2025
Faithful representation - ✔✔✔3 parts: completeness, neutrality, free from error, conservatism
Predictive value - ✔✔✔info useful in predicting the future
Confirmatory value - ✔✔✔info confirms expectations
Materiality - ✔✔✔concerns relative size of an item and its effect on decisions
Completeness - ✔✔✔contains all necessary information
Neutrality - ✔✔✔freedom from bias
Free from error - ✔✔✔no errors or omissions
Conservatism - ✔✔✔accountants require greater verification before recognizing good news than bad news
Enhancing qualitative characteristics - ✔✔✔comparability, verifiability, timeliness and understandability
Comparability and consistency - ✔✔✔important for making interfere comparisons
Applying the same accounting practices overtime
Verifiability - ✔✔✔consensus among different measures
Timeliness - ✔✔✔information is available prior to a decision
Understandability - ✔✔✔users understand the information in the context of the decision being made
Constraints - ✔✔✔cost-benefit, materiality, conservatism
@pg 1
Advanced Financial and managerial accounting exam based
Questions and guaranteed answers
11th edition 2025
Revenues - ✔✔✔inflows or other enhancements of assets of an entity or settlements of its liabilities during
a period from delivering or producing goods, rendering services, or other activities that constitute the
entities ongoing major/central functions
Expenses - ✔✔✔outflows or other using up of assets or incurrences of liabilities during a period from
delivering or producing goods, rendering services, or other activities that constitute the entities ongoing
major or central operations
Gains - ✔✔✔increases in equity from peripheral or incidental transactions of an entity
Losses - ✔✔✔represent decreases in equity arising from peripheral or incidental transactions of an entity
4 underlying assumptions - ✔✔✔economic entity, going concern, monetary unit, periodicity
Economic entity - ✔✔✔economic events can be identified with an economic entity
External users of financial information - ✔✔✔investors, creditors, employees, banks, labor unions,
customers, suppliers, government regulatory agencies
Relevance - ✔✔✔3 parts: predictive, confirmatory value, materiality
Pertinent to a decision at hand
@pg 1
, Financial and managerial Accounting 2025
Faithful representation - ✔✔✔3 parts: completeness, neutrality, free from error, conservatism
Predictive value - ✔✔✔info useful in predicting the future
Confirmatory value - ✔✔✔info confirms expectations
Materiality - ✔✔✔concerns relative size of an item and its effect on decisions
Completeness - ✔✔✔contains all necessary information
Neutrality - ✔✔✔freedom from bias
Free from error - ✔✔✔no errors or omissions
Conservatism - ✔✔✔accountants require greater verification before recognizing good news than bad news
Enhancing qualitative characteristics - ✔✔✔comparability, verifiability, timeliness and understandability
Comparability and consistency - ✔✔✔important for making interfere comparisons
Applying the same accounting practices overtime
Verifiability - ✔✔✔consensus among different measures
Timeliness - ✔✔✔information is available prior to a decision
Understandability - ✔✔✔users understand the information in the context of the decision being made
Constraints - ✔✔✔cost-benefit, materiality, conservatism
@pg 1
