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Intermediate Accounting Exam #1 Questions with Detailed
Verified Answers (100% Correct Answers) /Already Graded
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providers of financial information
Ans: profit oriented companies, not for profit entities, households
external users of financial information
Ans: investors, creditors, employees, banks, labor unions, customers,
suppliers, gov regulatory agencies
conceptual framework
Ans: underlying structure for the development of accounting standards
GAAP
Ans: generally accepted accounting principles- body of accounting standards
FASB
Ans: financial accounting standards board
3rd level of framework
Ans: constraints, assumptions, principles (CAP)
2nd level of framework
Ans: qualitative characteristics, elements
1st levee of framework
Ans: objective: to provide financial information useful to capital providers
qualitative characteristics
Ans: DECISION USEFULNESS: 2 parts, relevance and faithful representation
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vPretest - Stuvia US
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relevance
Ans: 3 parts: predictive, confirmatory value, materiality
pertinent to a decision at hand
faithful representation
Ans: 3 parts: completeness, neutrality, free from error, conservatism
exists when there is an agreement between a measure and the phenomenon it
purports to represent
predictive value
Ans: info useful in predicting the future
confirmatory value
Ans: info confirms expectations
materiality
Ans: concerns relative size of an item and its effect on decisions
completeness
Ans: contains all necessary information
neutrality
Ans: freedom from bias
free from error
Ans: no errors or omissions
conservatism
Approved By:
vPretest - Stuvia US
Intermediate Accounting Exam #1 Questions with Detailed
Verified Answers (100% Correct Answers) /Already Graded
A+
providers of financial information
Ans: profit oriented companies, not for profit entities, households
external users of financial information
Ans: investors, creditors, employees, banks, labor unions, customers,
suppliers, gov regulatory agencies
conceptual framework
Ans: underlying structure for the development of accounting standards
GAAP
Ans: generally accepted accounting principles- body of accounting standards
FASB
Ans: financial accounting standards board
3rd level of framework
Ans: constraints, assumptions, principles (CAP)
2nd level of framework
Ans: qualitative characteristics, elements
1st levee of framework
Ans: objective: to provide financial information useful to capital providers
qualitative characteristics
Ans: DECISION USEFULNESS: 2 parts, relevance and faithful representation
Approved By:
vPretest - Stuvia US
, 2
relevance
Ans: 3 parts: predictive, confirmatory value, materiality
pertinent to a decision at hand
faithful representation
Ans: 3 parts: completeness, neutrality, free from error, conservatism
exists when there is an agreement between a measure and the phenomenon it
purports to represent
predictive value
Ans: info useful in predicting the future
confirmatory value
Ans: info confirms expectations
materiality
Ans: concerns relative size of an item and its effect on decisions
completeness
Ans: contains all necessary information
neutrality
Ans: freedom from bias
free from error
Ans: no errors or omissions
conservatism
Approved By:
vPretest - Stuvia US
