CFAS Review Guide: Prepare and Succeed
measure - correct answer ✔✔the result of applying a measurement basis to an asset or liability and
related income and expenses
Combined Financial Statements - correct answer ✔✔Financial statements of a reporting entity that
comprises two or more entities that are not all linked by a parent-subsidiary relationship
Reporting Entity - correct answer ✔✔An entity that is required, or chooses, to prepare general purpose
financial statements
Equity Claim - correct answer ✔✔a claim on the residual interest in the assets of the entity after
deducting all its liabilities
unit of account - correct answer ✔✔The right or the group of rights, the obligation, or the group of
obligations, or the group of rights and obligations, to which recognition criteria and measurement
concepts are applied
executory contract - correct answer ✔✔A contract, or a portion of a contract, that is equally
unperformed- neither party has fulfilled any of its obligations, or both parties have partially fulfilled their
obligations to an equal extent
Measurement basis - correct answer ✔✔An identified feature - for example, historical cost, fair value or
fulfillment value- of an item being measured
Material Information - correct answer ✔✔Information whose omission or misstatement could influence
decisions that the primary users of general purpose financial reports make on the basis of those reports,
which provide financial information about specific reporting entity
Recognition - correct answer ✔✔The process of capturing for inclusion in the statement of financial
position or the statement (s) of financial performance an item that meets the definition of one of the
elements of financial statements - an asset, a liability, equity income, or expenses.
, Liability - correct answer ✔✔A present obligation of the entity to transfer an economic resource as a
result of past events
offsetting - correct answer ✔✔Grouping an asset and liability that are recognized and measured as
separate units of account into a single net amount in the statement of financial position
Prudence - correct answer ✔✔The exercise of caution when making judgements under conditions of
uncertainty
Derecognition - correct answer ✔✔The removal of all or part of a recognized asset or liability from an
entity's statement of financial position
Expenses - correct answer ✔✔decrease in assets, or increases in liabilities, that result in decreases in
equity, other than those relating to distributions to holders of equity claims
Assets - correct answer ✔✔A present economic resource controlled by the entity as a result of past
events.
carrying amount - correct answer ✔✔The about at which an asset, a liability or equity is recognized in
the statement of financial position
Income - correct answer ✔✔Increases in assets, or decreases in liabilities, that result in increases in
equity, other than those relating to contributions from holders of equity.
Unconsolidated financial statements - correct answer ✔✔Financial statements of a reporting entity that
is the parent alone
Fundamental qualitative characteristics - correct answer ✔✔A qualitative characteristic that financial
information must possess to be useful to primary users of general purpose financial reports
Aggregation - correct answer ✔✔The adding together of assets, liabilities, equity, income, or expenses
that have shared characteristics and are included in the same classification
measure - correct answer ✔✔the result of applying a measurement basis to an asset or liability and
related income and expenses
Combined Financial Statements - correct answer ✔✔Financial statements of a reporting entity that
comprises two or more entities that are not all linked by a parent-subsidiary relationship
Reporting Entity - correct answer ✔✔An entity that is required, or chooses, to prepare general purpose
financial statements
Equity Claim - correct answer ✔✔a claim on the residual interest in the assets of the entity after
deducting all its liabilities
unit of account - correct answer ✔✔The right or the group of rights, the obligation, or the group of
obligations, or the group of rights and obligations, to which recognition criteria and measurement
concepts are applied
executory contract - correct answer ✔✔A contract, or a portion of a contract, that is equally
unperformed- neither party has fulfilled any of its obligations, or both parties have partially fulfilled their
obligations to an equal extent
Measurement basis - correct answer ✔✔An identified feature - for example, historical cost, fair value or
fulfillment value- of an item being measured
Material Information - correct answer ✔✔Information whose omission or misstatement could influence
decisions that the primary users of general purpose financial reports make on the basis of those reports,
which provide financial information about specific reporting entity
Recognition - correct answer ✔✔The process of capturing for inclusion in the statement of financial
position or the statement (s) of financial performance an item that meets the definition of one of the
elements of financial statements - an asset, a liability, equity income, or expenses.
, Liability - correct answer ✔✔A present obligation of the entity to transfer an economic resource as a
result of past events
offsetting - correct answer ✔✔Grouping an asset and liability that are recognized and measured as
separate units of account into a single net amount in the statement of financial position
Prudence - correct answer ✔✔The exercise of caution when making judgements under conditions of
uncertainty
Derecognition - correct answer ✔✔The removal of all or part of a recognized asset or liability from an
entity's statement of financial position
Expenses - correct answer ✔✔decrease in assets, or increases in liabilities, that result in decreases in
equity, other than those relating to distributions to holders of equity claims
Assets - correct answer ✔✔A present economic resource controlled by the entity as a result of past
events.
carrying amount - correct answer ✔✔The about at which an asset, a liability or equity is recognized in
the statement of financial position
Income - correct answer ✔✔Increases in assets, or decreases in liabilities, that result in increases in
equity, other than those relating to contributions from holders of equity.
Unconsolidated financial statements - correct answer ✔✔Financial statements of a reporting entity that
is the parent alone
Fundamental qualitative characteristics - correct answer ✔✔A qualitative characteristic that financial
information must possess to be useful to primary users of general purpose financial reports
Aggregation - correct answer ✔✔The adding together of assets, liabilities, equity, income, or expenses
that have shared characteristics and are included in the same classification
