Wall Street Prep Accounting EXAM with complete solutions
SFAS - Standard Financial Accounting Statements, issued by the FASB
AA,P,C: Accounting Entity - The assumption that a corporation is an entity separate from any
person
AA,P,C: Going Concern - The Assumption that a corporation will continue to exist for the
foreseeable future
AA,P,C: Measurement & Units - The principle that financial statements can only show the
quantifiable assets or liabilities of a corporation
AA,P,C: Periodicity - the principle that financial statements reflect a standard period of time,
usually years or quarters
AA,P,C: Historical Cost - The principle that resources and liabilities are recorded at their initial
cost rather than a continuously updating value
AA,P,C: Revenue Recognition - The principle that revenues are recorded when EARNED and
MEASURABLE
AA,P,C: Matching - The principle that costs must be recorded in the same period that revenues
were generated
, AA,P,C: Disclosure - The principle that a corporation must reveal all relevant financial
information
AA,P,C: Estimates and Judgement - The constraint that estimates/predictions cannot always be
accurate
AA,P,C: Materiality - The constraint that one transaction may be deemed relevant for one
company but not another, usually based on size
AA,P,C: Consistency - The constraint that recording methods and assumptions may not always
be the same over time
AA,P,C: Conservatism - The constraint that assets are usually understated and liabilities are not
understated, for example historical cost measurements
Income Statement - depicts the revenues and expenses of a company over a given time period
what drives profitability, operating performance
profit and loss, growth prospects, cost structure, profitability, OVER SPECIFIC PERIOD OF
TIME
SFAS - Standard Financial Accounting Statements, issued by the FASB
AA,P,C: Accounting Entity - The assumption that a corporation is an entity separate from any
person
AA,P,C: Going Concern - The Assumption that a corporation will continue to exist for the
foreseeable future
AA,P,C: Measurement & Units - The principle that financial statements can only show the
quantifiable assets or liabilities of a corporation
AA,P,C: Periodicity - the principle that financial statements reflect a standard period of time,
usually years or quarters
AA,P,C: Historical Cost - The principle that resources and liabilities are recorded at their initial
cost rather than a continuously updating value
AA,P,C: Revenue Recognition - The principle that revenues are recorded when EARNED and
MEASURABLE
AA,P,C: Matching - The principle that costs must be recorded in the same period that revenues
were generated
, AA,P,C: Disclosure - The principle that a corporation must reveal all relevant financial
information
AA,P,C: Estimates and Judgement - The constraint that estimates/predictions cannot always be
accurate
AA,P,C: Materiality - The constraint that one transaction may be deemed relevant for one
company but not another, usually based on size
AA,P,C: Consistency - The constraint that recording methods and assumptions may not always
be the same over time
AA,P,C: Conservatism - The constraint that assets are usually understated and liabilities are not
understated, for example historical cost measurements
Income Statement - depicts the revenues and expenses of a company over a given time period
what drives profitability, operating performance
profit and loss, growth prospects, cost structure, profitability, OVER SPECIFIC PERIOD OF
TIME
