providers of financial information ~CORRECT ANSWER~✓✓profit
oriented companies, not for profit entities, households
external users of financial information ~CORRECT
ANSWER~✓✓investors, creditors, employees, banks, labor unions,
customers, suppliers, gov regulatory agencies
conceptual framework ~CORRECT ANSWER~✓✓underlying structure
for the development of accounting standards
GAAP ~CORRECT ANSWER~✓✓generally accepted accounting
principles- body of accounting standards
FASB ~CORRECT ANSWER~✓✓financial accounting standards board
3rd level of framework ~CORRECT ANSWER~✓✓constraints,
assumptions, principles (CAP)
2nd level of framework ~CORRECT ANSWER~✓✓qualitative
characteristics, elements
, 1st levee of framework ~CORRECT ANSWER~✓✓objective: to provide
financial information useful to capital providers
qualitative characteristics ~CORRECT ANSWER~✓✓DECISION
USEFULNESS: 2 parts, relevance and faithful representation
relevance ~CORRECT ANSWER~✓✓3 parts: predictive, confirmatory
value, materiality
pertinent to a decision at hand
faithful representation ~CORRECT ANSWER~✓✓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 ~CORRECT ANSWER~✓✓info useful in predicting the
future
confirmatory value ~CORRECT ANSWER~✓✓info confirms
expectations
oriented companies, not for profit entities, households
external users of financial information ~CORRECT
ANSWER~✓✓investors, creditors, employees, banks, labor unions,
customers, suppliers, gov regulatory agencies
conceptual framework ~CORRECT ANSWER~✓✓underlying structure
for the development of accounting standards
GAAP ~CORRECT ANSWER~✓✓generally accepted accounting
principles- body of accounting standards
FASB ~CORRECT ANSWER~✓✓financial accounting standards board
3rd level of framework ~CORRECT ANSWER~✓✓constraints,
assumptions, principles (CAP)
2nd level of framework ~CORRECT ANSWER~✓✓qualitative
characteristics, elements
, 1st levee of framework ~CORRECT ANSWER~✓✓objective: to provide
financial information useful to capital providers
qualitative characteristics ~CORRECT ANSWER~✓✓DECISION
USEFULNESS: 2 parts, relevance and faithful representation
relevance ~CORRECT ANSWER~✓✓3 parts: predictive, confirmatory
value, materiality
pertinent to a decision at hand
faithful representation ~CORRECT ANSWER~✓✓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 ~CORRECT ANSWER~✓✓info useful in predicting the
future
confirmatory value ~CORRECT ANSWER~✓✓info confirms
expectations
