CPA FAR-MNUMONICS AND FORMULAS
QUESTIONS WITH ACTUAL ANSWERS.
Hierarchy of Accounting Qualities = BUD ANS -Benefit>Cost
Understandability
Decision Usefulness
What makes up Revlevance = PFT ANS -P-Predictive Value
F-Feedback Value
T-Timeliness
What makes up Reliability, Nobody Relies on Financials unless Verified ANS -Neuturality, free of bias
Representational Faithfulness
Verifability, same results can be duplicated
Sources of accounting literature = BOSSII ANS -B-Accounting Research Bulletins
O-Accounting Principles board Opinion
S-FASB Statements of Financial Accounting
S-FASB Staff Positions
I-FASB Interpretations
I-FASB Statements, Implementation
FASB Statement of Financial Accounting Concept #7; the 5 Elements of PV = UVOTE ANS -U-the price of
Uncertainty
V-Expectations about timing Variations
O-Other factors (liquidity & market imperfection)
T-Time value of money
E-Estimate of future cash flow
, Authoritiative Literature included in the Codification=FEDPRIA ANS -F-(FASB) Financial Accounting
Standards Board
E-Emerging Issues Task Force (EITF)
D-Derivative Implementation Group Issues
P-Accounting Principles Board Opinions
R-Accounting research Bulletins
I-Accounting Interpretations
A-(AICPA)American Institutue of Certified Public Accountants
*Statements of Position
*Auditing and Accounting Guides
*Practice bulletins
*technical Inquiry Service
Presentation order of the Major components of Income and Retained Earnings Statements=IDEA ANS -I-
Income (or Loss) from Continuing Operations (before tax)
D-Income (or Loss) from Discountinued Operations (net of tax)
E- Extraordinary Items (reported net of tax)
A-Cumulative Effect of Change in Accounting Principle (reported net of tax) (Reported on Statement of
Retained Earnings)
Other Comprehensive Income=PUFER ANS -P-Pension adjustments
U-Unrealized gains and losses (available for sale securities
F-Foreign currency items
E-Effective portion cash flow hedges
R-Revaluation of surplus (IFRS only)
Net Income = "IDE" "PUFER" ANS -Step 1: Net income-IDE
Income from continuing operations
Discontinued operations
Extraodinary Items
QUESTIONS WITH ACTUAL ANSWERS.
Hierarchy of Accounting Qualities = BUD ANS -Benefit>Cost
Understandability
Decision Usefulness
What makes up Revlevance = PFT ANS -P-Predictive Value
F-Feedback Value
T-Timeliness
What makes up Reliability, Nobody Relies on Financials unless Verified ANS -Neuturality, free of bias
Representational Faithfulness
Verifability, same results can be duplicated
Sources of accounting literature = BOSSII ANS -B-Accounting Research Bulletins
O-Accounting Principles board Opinion
S-FASB Statements of Financial Accounting
S-FASB Staff Positions
I-FASB Interpretations
I-FASB Statements, Implementation
FASB Statement of Financial Accounting Concept #7; the 5 Elements of PV = UVOTE ANS -U-the price of
Uncertainty
V-Expectations about timing Variations
O-Other factors (liquidity & market imperfection)
T-Time value of money
E-Estimate of future cash flow
, Authoritiative Literature included in the Codification=FEDPRIA ANS -F-(FASB) Financial Accounting
Standards Board
E-Emerging Issues Task Force (EITF)
D-Derivative Implementation Group Issues
P-Accounting Principles Board Opinions
R-Accounting research Bulletins
I-Accounting Interpretations
A-(AICPA)American Institutue of Certified Public Accountants
*Statements of Position
*Auditing and Accounting Guides
*Practice bulletins
*technical Inquiry Service
Presentation order of the Major components of Income and Retained Earnings Statements=IDEA ANS -I-
Income (or Loss) from Continuing Operations (before tax)
D-Income (or Loss) from Discountinued Operations (net of tax)
E- Extraordinary Items (reported net of tax)
A-Cumulative Effect of Change in Accounting Principle (reported net of tax) (Reported on Statement of
Retained Earnings)
Other Comprehensive Income=PUFER ANS -P-Pension adjustments
U-Unrealized gains and losses (available for sale securities
F-Foreign currency items
E-Effective portion cash flow hedges
R-Revaluation of surplus (IFRS only)
Net Income = "IDE" "PUFER" ANS -Step 1: Net income-IDE
Income from continuing operations
Discontinued operations
Extraodinary Items
