Solutions Manual for Intermediate
Accounting, 18th Edition
⏹ Cash basis of accounting. Answer: -Measurement of cash receipts and
cash payments from transactions related to providing goods and service
-Difference is net operating cash flow
⏹ Accrual Basis accounting. Answer: Measurement of revenues and
expenses, regardless of when cash is received or paid
Difference is net income or net loss
⏹ GAAP. Answer: generally accepted accounting principles
⏹ Financial Accounting Standards Board (FASB). Answer: The primary
accounting standard-setting body in the United States.
⏹ Accounting Standards Updates. Answer: These Updates amend the
Accounting Standards Codification, which represents the source of
authoritative accounting standards, other than standards issued by the
SEC.
⏹ International Accounting Standards Board (IASB). Answer: An
accounting standard-setting body that issues standards adopted by many
countries outside of the United States.
, ⏹ International Financial Reporting Standards (IFRS). Answer:
Accounting standards, issued by the IASB, that have been adopted by
many countries outside of the United States.
⏹ auditor. Answer: expert who expresses an opinion about the fairness
of a company's financial statements through GAAP
⏹ economic entity. Answer: assumption presumes that economic events
can be identified specifically with an economic entity
⏹ Going Concern Assumption. Answer: An assumption by accountants
that a business will operate in the foreseeable future unless specific
evidence suggests that this is not a reasonable assumption.
⏹ Periodicity. Answer: The assumption that although the lifetime of a
business is uncertain, it is still useful to estimate its net income in terms
of accounting periods.
⏹ monetary unit. Answer: used in U.S. financial statements is the U.S.
dollar
⏹ recognition. Answer: refers to the process of admitting information
into the financial statements
⏹ measurement. Answer: is the process of associating numerical
amounts with the elements
Accounting, 18th Edition
⏹ Cash basis of accounting. Answer: -Measurement of cash receipts and
cash payments from transactions related to providing goods and service
-Difference is net operating cash flow
⏹ Accrual Basis accounting. Answer: Measurement of revenues and
expenses, regardless of when cash is received or paid
Difference is net income or net loss
⏹ GAAP. Answer: generally accepted accounting principles
⏹ Financial Accounting Standards Board (FASB). Answer: The primary
accounting standard-setting body in the United States.
⏹ Accounting Standards Updates. Answer: These Updates amend the
Accounting Standards Codification, which represents the source of
authoritative accounting standards, other than standards issued by the
SEC.
⏹ International Accounting Standards Board (IASB). Answer: An
accounting standard-setting body that issues standards adopted by many
countries outside of the United States.
, ⏹ International Financial Reporting Standards (IFRS). Answer:
Accounting standards, issued by the IASB, that have been adopted by
many countries outside of the United States.
⏹ auditor. Answer: expert who expresses an opinion about the fairness
of a company's financial statements through GAAP
⏹ economic entity. Answer: assumption presumes that economic events
can be identified specifically with an economic entity
⏹ Going Concern Assumption. Answer: An assumption by accountants
that a business will operate in the foreseeable future unless specific
evidence suggests that this is not a reasonable assumption.
⏹ Periodicity. Answer: The assumption that although the lifetime of a
business is uncertain, it is still useful to estimate its net income in terms
of accounting periods.
⏹ monetary unit. Answer: used in U.S. financial statements is the U.S.
dollar
⏹ recognition. Answer: refers to the process of admitting information
into the financial statements
⏹ measurement. Answer: is the process of associating numerical
amounts with the elements
