Intermediate Accounting I Final
Intermediate
Exam StudyAccounting
Guide _ Comprehensive
I Final
Intermediate
Exam Study
Review
Accounting
Guide
& Key
_ Comprehensive
I Final
Concepts.pdf
Exam Study
Review
Guide
& Key
_ Comprehensive
Concepts.pdf Review & Key Concepts.pdf
Intermediate
Accounting I Final
Exam Study Guide
| Comprehensive
Review & Key
Concepts
Intermediate Accounting I Final
Intermediate
Exam StudyAccounting
Guide _ Comprehensive
I Final
Intermediate
Exam Study
Review
Accounting
Guide
& Key
_ Comprehensive
I Final
Concepts.pdf
Exam Study
Review
Guide
& Key
_ Comprehensive
Concepts.pdf Review & Key Concepts.pdf
,Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
Four basic assumptions of accounting • Going concern
• Economic entity
• Monetary unit
• Periodicity
Going concern The entity will continue to operate indefinitely - not go into liquidation in the near
future.
Economic entity The owner(s) and business affairs are separated and reported separately.
Monetary unit All items are valued in an accepted currency (ex. US $), assumed stable in purchasing
power over time.
Periodicity The entity divides its life into artificial time periods (ex. quarterly/annual) for reporting
purposes.
The Conceptual Framework purpose Assist standard-setters (FASB) in developing and revising accounting standards.
Objective of financial reporting Provide financial information about the reporting entity that is useful to existing and
potential investors, lenders, and other creditors in making decisions about providing
resources to the entity.
Qualitative characteristics • Fundamental characteristics
• Enhancing characteristics
Fundamental characteristics • Distinguish useful from not useful information.
• relevance
• faithful representation
Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
, Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
Relevance Information is capable of making a difference in decisions. Includes predictive value,
confirmatory value, and materiality.
Faithful representation Information is complete, neutral, and free from error.
Enhancing characteristics • Improve usefulness.
• comparability
• verifiability
• timelines
• understandability
Cost constraint The expected benefits of providing information must exceed the costs of providing it.
elements of financial statements • point-in-time elements (balance sheet)
• period-of-time elements (income statement)
Point-in-Time Elements • Elements reported on the balance sheet.
• Assets: present right to an economic benefit
• Liabilities: present obligation to transfer an economic benefit
• equity: net assets (assets minus liabilities)
Period-of-Time elements • Elements reported on the income statement.
• revenues: inflows from delivering goods/services
• expenses: outflows from delivering goods/services
• gains: increase in equity NOT from revenues or owner investments
• losses: decrease in equity NOT from expenses or owner distributions
• comprehensive income: all changes in equity from owner transactions
Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
Intermediate
Exam StudyAccounting
Guide _ Comprehensive
I Final
Intermediate
Exam Study
Review
Accounting
Guide
& Key
_ Comprehensive
I Final
Concepts.pdf
Exam Study
Review
Guide
& Key
_ Comprehensive
Concepts.pdf Review & Key Concepts.pdf
Intermediate
Accounting I Final
Exam Study Guide
| Comprehensive
Review & Key
Concepts
Intermediate Accounting I Final
Intermediate
Exam StudyAccounting
Guide _ Comprehensive
I Final
Intermediate
Exam Study
Review
Accounting
Guide
& Key
_ Comprehensive
I Final
Concepts.pdf
Exam Study
Review
Guide
& Key
_ Comprehensive
Concepts.pdf Review & Key Concepts.pdf
,Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
Four basic assumptions of accounting • Going concern
• Economic entity
• Monetary unit
• Periodicity
Going concern The entity will continue to operate indefinitely - not go into liquidation in the near
future.
Economic entity The owner(s) and business affairs are separated and reported separately.
Monetary unit All items are valued in an accepted currency (ex. US $), assumed stable in purchasing
power over time.
Periodicity The entity divides its life into artificial time periods (ex. quarterly/annual) for reporting
purposes.
The Conceptual Framework purpose Assist standard-setters (FASB) in developing and revising accounting standards.
Objective of financial reporting Provide financial information about the reporting entity that is useful to existing and
potential investors, lenders, and other creditors in making decisions about providing
resources to the entity.
Qualitative characteristics • Fundamental characteristics
• Enhancing characteristics
Fundamental characteristics • Distinguish useful from not useful information.
• relevance
• faithful representation
Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
, Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
Relevance Information is capable of making a difference in decisions. Includes predictive value,
confirmatory value, and materiality.
Faithful representation Information is complete, neutral, and free from error.
Enhancing characteristics • Improve usefulness.
• comparability
• verifiability
• timelines
• understandability
Cost constraint The expected benefits of providing information must exceed the costs of providing it.
elements of financial statements • point-in-time elements (balance sheet)
• period-of-time elements (income statement)
Point-in-Time Elements • Elements reported on the balance sheet.
• Assets: present right to an economic benefit
• Liabilities: present obligation to transfer an economic benefit
• equity: net assets (assets minus liabilities)
Period-of-Time elements • Elements reported on the income statement.
• revenues: inflows from delivering goods/services
• expenses: outflows from delivering goods/services
• gains: increase in equity NOT from revenues or owner investments
• losses: decrease in equity NOT from expenses or owner distributions
• comprehensive income: all changes in equity from owner transactions
Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf Intermediate accounting I final exam study guide.pdf
