Intermediate Finance Accounting 2025
Intermediate Finance Accounting 2025
Approved questions and answers
Objective of financial reporting - ✔✔✔provide financial information about the reporting
entity that is useful to present and potential equity investors, lenders, and other creditors
Consistency - ✔✔✔when a company applies the same accounting treatment to similar
events, from period to period.
Verifiability - ✔✔✔occurs when independent measurers, using the same methods, obtain
similar results.
Timeliness - ✔✔✔having information available to decision-makers before it loses its
capacity to influence decisions.
Held-to-maturity - ✔✔✔Debt securities that a company has the positive intent and ability to
hold to maturity
@pg 1
, Intermediate Finance Accounting 2025
Trading - ✔✔✔Debt securities bought and held primarily for sale in the near term to
generate income on short-term price differences
Available for sale - ✔✔✔Debt securities not classified as held-to-maturity or trading
securities
Noncurrent Assets - ✔✔✔Long-term investments
Property, plant, and equipment
Intangible assets
Understandability - ✔✔✔Decision-makers vary widely in the types of decisions they make,
how they make decisions, the information they already possess or can obtain from other
sources, and their ability to process the information.
Assets - ✔✔✔probably future economic benefits obtained or controlled by a particular
entity as a result of past transactions or events
Liabilities - ✔✔✔Probable future sacrifices of economic benefits arising from present
obligations of a particular entity to transfer assets or provide services to other entities in the
future as a result of past transactions or events.
Equity - ✔✔✔Residual interest in the assets of an entity that remains after deducting its
liabilities.
Financial Accounting Standards Board - ✔✔✔establish and improve standards of financial
accounting and reporting for the guidance and education of the public which includes
issuers, auditors, and users of financial information
@pg 1
Intermediate Finance Accounting 2025
Approved questions and answers
Objective of financial reporting - ✔✔✔provide financial information about the reporting
entity that is useful to present and potential equity investors, lenders, and other creditors
Consistency - ✔✔✔when a company applies the same accounting treatment to similar
events, from period to period.
Verifiability - ✔✔✔occurs when independent measurers, using the same methods, obtain
similar results.
Timeliness - ✔✔✔having information available to decision-makers before it loses its
capacity to influence decisions.
Held-to-maturity - ✔✔✔Debt securities that a company has the positive intent and ability to
hold to maturity
@pg 1
, Intermediate Finance Accounting 2025
Trading - ✔✔✔Debt securities bought and held primarily for sale in the near term to
generate income on short-term price differences
Available for sale - ✔✔✔Debt securities not classified as held-to-maturity or trading
securities
Noncurrent Assets - ✔✔✔Long-term investments
Property, plant, and equipment
Intangible assets
Understandability - ✔✔✔Decision-makers vary widely in the types of decisions they make,
how they make decisions, the information they already possess or can obtain from other
sources, and their ability to process the information.
Assets - ✔✔✔probably future economic benefits obtained or controlled by a particular
entity as a result of past transactions or events
Liabilities - ✔✔✔Probable future sacrifices of economic benefits arising from present
obligations of a particular entity to transfer assets or provide services to other entities in the
future as a result of past transactions or events.
Equity - ✔✔✔Residual interest in the assets of an entity that remains after deducting its
liabilities.
Financial Accounting Standards Board - ✔✔✔establish and improve standards of financial
accounting and reporting for the guidance and education of the public which includes
issuers, auditors, and users of financial information
@pg 1
