Intermediate Accounting I (D103) Units 2–4 Pre Assessment – Study Guide & Practice Questions Newest Update

Intermediate Accounting I (D103) Units 2–4 Pre-
Assessment – Study Guide & Practice Questions Newest
Update
Which basic objective is associated with the conceptual framework for
financial reporting? - ANSWER---Decision-Usefulness


What entity requires that members prepare financial statements in
accordance with GAAP? - ANSWER---AICPA's Code of Professional
Conduct


What is addressed in Rule 203 of the Code of Professional Conduct? -
ANSWER---Financial statements being based on generally accepted
accounting principles


What organization provides implementation guidance within the
framework of the Codification to reduce diversity in practice on a timely
basis? - ANSWER---AAA (American Accounting Association)


The "why"-purpose of accounting - ANSWER---Objective of financial
reporting


The conceptual framework for financial reporting consists of how many
levels? - ANSWER---3


Qualitative Characteristics of Accounting Information and elements of
financial statements - ANSWER---Bridge level-2nd level

, Intermediate Accounting I (D103) Units 2–4 Pre-
Assessment – Study Guide & Practice Questions Newest
Update
"the how" - the implementation of accounting - ANSWER---
Measurement, recognition and disclosure concepts such as assumptions,
principles, and constraints


Comparability - ANSWER---Enhancing quality


Verifiability - ANSWER---Enhancing quality


Timeliness - ANSWER---Enhancing quality


Understandability - ANSWER---Enhancing quality


Relevance - ANSWER---a fundamental quality of useful information:
accounting information is considered relevant if it would make a
difference in a business decision


Faithful Representation - ANSWER---the numbers and descriptions
match what really existed or happened


predictive value - ANSWER---ingredient of relevance


Confirmatory Value - ANSWER---ingredient of relevance