Modern Advanced Accounting Actual Test Questions And Solutions Comprehensive Review Package

MODERN ADVANCED ACCOUNTING
ACTUAL TEST QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE

●● main focus when looking at F/S
Answer: -company's ability to generate future net cash inflows
- management's ability to protect and enhance capital providers'
investments


●● Relevance
Answer: The quality of information that indicates the information makes
a difference in a decision.


●● Faithful Representation
Answer: information that is complete, neutral, and free from error


●● why do we need the FASB
Answer: help ups to have financial reporting that is high quality, neutral,
credible, and decreases uncertainty


●● FASB stands for
Answer: Financial Accounting Standards Board

, ●● FAF stands for:
Answer: Financial Accounting Foundation


●● FAF
Answer: selects members of the FASB & Advisory Councils, funds their
activities, and exercises general oversight


●● FASB
Answer: establish and improve standards of financial accounting and
reporting for the guidance/education of the public


●● FASB Codification
Answer: provide in one place all the authoritative literature related to a
particular topic.
Creates one level of GAAP, which is considered authoritative.
All other accounting literature is considered non-authoritative.


●● FASB ASU
Answer: Accounting Standards Updates
- amend the Codification and are considered authoritative upon
incorporation into the ASU