ASU FIN 300 CORRECT COMPREHENSIVE
QUESTIONS AND ANSWERS SURE A+
✔✔interim financial statements - ✔✔Financial statements providing information for a
time period shorter than the fiscal year.
✔✔Audited financial statements - ✔✔Financial statements that have been examined by
an independent auditor to determine whether they fairly represent the financial condition
of the business
✔✔Compilation of financial statements - ✔✔The presentation, in the form of financial
statements, of information that is the representation of management or owners without
undertaking to express any assurance on the statements.
✔✔GAAP - ✔✔The standards and rules that accountants follow while recording and
reporting financial activities.
✔✔Revenue Recognition Principle - ✔✔The principle that companies recognize
revenue in the accounting period in which the performance obligation is satisfied.
✔✔Historical Cost Principle - ✔✔An accounting principle that states that companies
should record assets at their cost.
✔✔Matching Principle - ✔✔recognize expenses in the same period as the revenues
they help to generate
✔✔Full Disclosure Principle - ✔✔Accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users.
✔✔Objectivity Principle - ✔✔The accounting principle that requires business
transactions to be recorded using the best objective evidence
QUESTIONS AND ANSWERS SURE A+
✔✔interim financial statements - ✔✔Financial statements providing information for a
time period shorter than the fiscal year.
✔✔Audited financial statements - ✔✔Financial statements that have been examined by
an independent auditor to determine whether they fairly represent the financial condition
of the business
✔✔Compilation of financial statements - ✔✔The presentation, in the form of financial
statements, of information that is the representation of management or owners without
undertaking to express any assurance on the statements.
✔✔GAAP - ✔✔The standards and rules that accountants follow while recording and
reporting financial activities.
✔✔Revenue Recognition Principle - ✔✔The principle that companies recognize
revenue in the accounting period in which the performance obligation is satisfied.
✔✔Historical Cost Principle - ✔✔An accounting principle that states that companies
should record assets at their cost.
✔✔Matching Principle - ✔✔recognize expenses in the same period as the revenues
they help to generate
✔✔Full Disclosure Principle - ✔✔Accounting principle that dictates that companies
disclose circumstances and events that make a difference to financial statement users.
✔✔Objectivity Principle - ✔✔The accounting principle that requires business
transactions to be recorded using the best objective evidence
