Intermediate Accounting Exam 1 | Most Recent Exam
2026 Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
Guaranteed Success!! Newest Exam | Just Released!!
Financial Accounting
The process that culminates in the preparation of financial reports on
the enterprise for use by both internal and external parties.
American Institute of CPAs (AICPA)
the National professional org of CPAs
-Important in the development of GAAP
-Established the Committee on Accounting Procedure (CAP) →
Accounting Principles Board (APB) → FASB
How was the AICPA created?
1. Established the committee of accounting procedure (CAP)
2. Accounting principles board (APB)
3. Financial Accounting and standards Board (FASB)
,Financial Accounting Standards Board (FASB)
-Major organization of the standard-setting structure for financial accounting
-Wants to establish and improve standards of financial accounting and
reporting for the guidance and education of the public
-Accounting guidance issued by FASB is considered GAAP
-Issues: Accounting standards updates & financial accounting concepts
Generally Accepted Accounting Principles (GAAP)
common set of accounting standards and procedures for which either an
authoritative accounting rule making body has established a principle
of
reporting in a given area, or over time, a given practice has been
accepted as appropriate because of its universal application
FASB Codification
-Provides all the authoritative literature related to a particular topic in
one place
-Topic → subtopics → sections → paragraphs
,Major Challenges in Financial Reporting
GAAP is as much a product of political action as it is of careful logic or
empirical findings
Measurement Principle
- Historical cost (maintain same value originally assigned)
- Fair value (estimate of the potential price)
Revenue Recognition Principle
Requires companies recognize revenue in the period performance
obligation is satisfied.
Expense Recognition Principle
Expenses follows the revenues.
Full Disclosure Principle
Providing information that is of sufficient importance to influence and inform
the judgement and decisions of an informed user (financial statements, notes
to the statements, supplementary information).
, 1/13/26, 12:03 AM Intermediate Accounting Exam 1
Two Perspectives of Time
1. Date (point in time): "as of"; balance sheet
2. Time between two dates (period): "for the year ended"; income
statement, cash flow
Objective of Financial Reporting
Provide information about the reporting entity that is useful to
present and potential to equity investors, lenders, and others.
Securities and Exchange Commission (SEC)
-Federal agency created to help develop and standardize financial
information presented to stockholders
-Companies that issue securities to public are required to file with
SEC
-Have powers to prescribe auditing practices and standards to be
employed by companies that fall within its jurisdiction
-Requires registrants to adhere to GAAP
/ 4/32
2026 Actual Complete Real Exam Questions And Correct
Answers (Verified Answers) Already Graded A+ |
Guaranteed Success!! Newest Exam | Just Released!!
Financial Accounting
The process that culminates in the preparation of financial reports on
the enterprise for use by both internal and external parties.
American Institute of CPAs (AICPA)
the National professional org of CPAs
-Important in the development of GAAP
-Established the Committee on Accounting Procedure (CAP) →
Accounting Principles Board (APB) → FASB
How was the AICPA created?
1. Established the committee of accounting procedure (CAP)
2. Accounting principles board (APB)
3. Financial Accounting and standards Board (FASB)
,Financial Accounting Standards Board (FASB)
-Major organization of the standard-setting structure for financial accounting
-Wants to establish and improve standards of financial accounting and
reporting for the guidance and education of the public
-Accounting guidance issued by FASB is considered GAAP
-Issues: Accounting standards updates & financial accounting concepts
Generally Accepted Accounting Principles (GAAP)
common set of accounting standards and procedures for which either an
authoritative accounting rule making body has established a principle
of
reporting in a given area, or over time, a given practice has been
accepted as appropriate because of its universal application
FASB Codification
-Provides all the authoritative literature related to a particular topic in
one place
-Topic → subtopics → sections → paragraphs
,Major Challenges in Financial Reporting
GAAP is as much a product of political action as it is of careful logic or
empirical findings
Measurement Principle
- Historical cost (maintain same value originally assigned)
- Fair value (estimate of the potential price)
Revenue Recognition Principle
Requires companies recognize revenue in the period performance
obligation is satisfied.
Expense Recognition Principle
Expenses follows the revenues.
Full Disclosure Principle
Providing information that is of sufficient importance to influence and inform
the judgement and decisions of an informed user (financial statements, notes
to the statements, supplementary information).
, 1/13/26, 12:03 AM Intermediate Accounting Exam 1
Two Perspectives of Time
1. Date (point in time): "as of"; balance sheet
2. Time between two dates (period): "for the year ended"; income
statement, cash flow
Objective of Financial Reporting
Provide information about the reporting entity that is useful to
present and potential to equity investors, lenders, and others.
Securities and Exchange Commission (SEC)
-Federal agency created to help develop and standardize financial
information presented to stockholders
-Companies that issue securities to public are required to file with
SEC
-Have powers to prescribe auditing practices and standards to be
employed by companies that fall within its jurisdiction
-Requires registrants to adhere to GAAP
/ 4/32
