Accounting & Financial Reporting
Comprehensive Final Exam Assessment Q & A
2024
What are net sales - Correct answer-Sales - returns (expected returns)
What is the pervasive constraint - Correct answer-Benefits > Costs
In Decision usefulness what falls under Relevance - Correct answer-Predictive Value
Confirmatory Value
In Decision usefulness what falls under Faithful Representation - Correct answer-Complete
Neutral
Free from Error
,What are the Enhancing Qualitative Characteristics - Correct answer-Comparability (consistency helps
achieve comparability)
Verifiability
Timeliness
Understandability
what are the statements of financial accounting concepts intended to establish?
a. gaap in financial reporting by business enterprises
b. the meaning of present fairly in accordance with gaap
c. the objectives and concepts for use in developing standards of financial accounting and reporting
d. the hierarchy of sources of gaap
c. the objectives and concepts for use in developing standards of financial accounting and reporting
according to the fasb conceptual framework, the objectives of financial reporting for business
enterprises are based on
a. gaap
b. reporting for regulators
c. the need for conservatism
,d. the need of the users of the information
d. the need of the users of the information
according to the fasb conceptual framework, the relevance of providing information in financial
statements is subject to the constraint of
a. comparability
b. cost-benefit
c. reliability
d. faithful representation
b. cost-benefit
the enhancing qualitative characteristics of financial reporting are
a. relevance, reliability, and faithful representation
b. cost benefit and materiality
c. comparability, verifiability, timeliness, and understandability
d. completeness, neutrality, and freedom from error
c. comparability, verifiability, timeliness, and understandability
according to statements of financial accounting concepts, neutrality is an ingredient of
faithful representation/relevance
a yes, yes
b yes, no
, c no, yes
d no, no
b yes, no
according to the fasb conceptual framework, which of the following is an enhancing quality that relates
to both relevance and faithful representation?
a. comparability
b. confirmatory value
c. predictive value
d. freedom from error
a. comparability
according to the fasb conceptual framework, the process of reporting an item in the financial
statements of an entity is
a. allocation
b. matching
c. realization
d. recognition
d. recognition
under fasb statement of financial accounting concepts 5, which of the following items would cause
earnings to differ from comprehensive income for an enterprise in an industry not having specialized
accounting principles?
a. unrealized loss on investments classified as available for sale securities
Comprehensive Final Exam Assessment Q & A
2024
What are net sales - Correct answer-Sales - returns (expected returns)
What is the pervasive constraint - Correct answer-Benefits > Costs
In Decision usefulness what falls under Relevance - Correct answer-Predictive Value
Confirmatory Value
In Decision usefulness what falls under Faithful Representation - Correct answer-Complete
Neutral
Free from Error
,What are the Enhancing Qualitative Characteristics - Correct answer-Comparability (consistency helps
achieve comparability)
Verifiability
Timeliness
Understandability
what are the statements of financial accounting concepts intended to establish?
a. gaap in financial reporting by business enterprises
b. the meaning of present fairly in accordance with gaap
c. the objectives and concepts for use in developing standards of financial accounting and reporting
d. the hierarchy of sources of gaap
c. the objectives and concepts for use in developing standards of financial accounting and reporting
according to the fasb conceptual framework, the objectives of financial reporting for business
enterprises are based on
a. gaap
b. reporting for regulators
c. the need for conservatism
,d. the need of the users of the information
d. the need of the users of the information
according to the fasb conceptual framework, the relevance of providing information in financial
statements is subject to the constraint of
a. comparability
b. cost-benefit
c. reliability
d. faithful representation
b. cost-benefit
the enhancing qualitative characteristics of financial reporting are
a. relevance, reliability, and faithful representation
b. cost benefit and materiality
c. comparability, verifiability, timeliness, and understandability
d. completeness, neutrality, and freedom from error
c. comparability, verifiability, timeliness, and understandability
according to statements of financial accounting concepts, neutrality is an ingredient of
faithful representation/relevance
a yes, yes
b yes, no
, c no, yes
d no, no
b yes, no
according to the fasb conceptual framework, which of the following is an enhancing quality that relates
to both relevance and faithful representation?
a. comparability
b. confirmatory value
c. predictive value
d. freedom from error
a. comparability
according to the fasb conceptual framework, the process of reporting an item in the financial
statements of an entity is
a. allocation
b. matching
c. realization
d. recognition
d. recognition
under fasb statement of financial accounting concepts 5, which of the following items would cause
earnings to differ from comprehensive income for an enterprise in an industry not having specialized
accounting principles?
a. unrealized loss on investments classified as available for sale securities
