Wall Street Prep Accounting – Questions With
Definitive Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
The principle that financial statements can only show the quantifiable assets
or liabilities of a corporation
Choose an answer
1 FASB 2 AA,P,C: Conservatism
3 AA,P,C: Measurement & Units 4 AA,P,C: Periodicity
Don't know?
Terms in this set (50)
Financial Accounting Standards Board, which
FASB oversees GAAP through issuance of SFAS, oversight
by the SEC
Standard Financial Accounting Statements, issued
SFAS
by the FASB
, The assumption that a corporation is an entity
AA,P,C: Accounting Entity
separate from any person
The Assumption that a corporation will continue to
AA,P,C: Going Concern
exist for the foreseeable future
The principle that financial statements can only
AA,P,C: Measurement &
show the quantifiable assets or liabilities of a
Units
corporation
the principle that financial statements reflect a
AA,P,C: Periodicity
standard period of time, usually years or quarters
The principle that resources and liabilities are
AA,P,C: Historical Cost recorded at their initial cost rather than a
continuously updating value
AA,P,C: Revenue The principle that revenues are recorded when
Recognition EARNED and MEASURABLE
The principle that costs must be recorded in the
AA,P,C: Matching
same period that revenues were generated
The principle that a corporation must reveal all
AA,P,C: Disclosure
relevant financial information
AA,P,C: Estimates and The constraint that estimates/predictions cannot
Judgement always be accurate
The constraint that one transaction may be deemed
AA,P,C: Materiality relevant for one company but not another, usually
based on size
The constraint that recording methods and
AA,P,C: Consistency
assumptions may not always be the same over time
The constraint that assets are usually understated
AA,P,C: Conservatism and liabilities are not understated, for example
historical cost measurements
depicts the revenues and expenses of a company
Income Statement
over a given time period
proceeds from the goods or services offered for
Revenue
sale by a company
Definitive Solutions
Save
Practice questions for this set
Learn 1 /7 Study with Learn
The principle that financial statements can only show the quantifiable assets
or liabilities of a corporation
Choose an answer
1 FASB 2 AA,P,C: Conservatism
3 AA,P,C: Measurement & Units 4 AA,P,C: Periodicity
Don't know?
Terms in this set (50)
Financial Accounting Standards Board, which
FASB oversees GAAP through issuance of SFAS, oversight
by the SEC
Standard Financial Accounting Statements, issued
SFAS
by the FASB
, The assumption that a corporation is an entity
AA,P,C: Accounting Entity
separate from any person
The Assumption that a corporation will continue to
AA,P,C: Going Concern
exist for the foreseeable future
The principle that financial statements can only
AA,P,C: Measurement &
show the quantifiable assets or liabilities of a
Units
corporation
the principle that financial statements reflect a
AA,P,C: Periodicity
standard period of time, usually years or quarters
The principle that resources and liabilities are
AA,P,C: Historical Cost recorded at their initial cost rather than a
continuously updating value
AA,P,C: Revenue The principle that revenues are recorded when
Recognition EARNED and MEASURABLE
The principle that costs must be recorded in the
AA,P,C: Matching
same period that revenues were generated
The principle that a corporation must reveal all
AA,P,C: Disclosure
relevant financial information
AA,P,C: Estimates and The constraint that estimates/predictions cannot
Judgement always be accurate
The constraint that one transaction may be deemed
AA,P,C: Materiality relevant for one company but not another, usually
based on size
The constraint that recording methods and
AA,P,C: Consistency
assumptions may not always be the same over time
The constraint that assets are usually understated
AA,P,C: Conservatism and liabilities are not understated, for example
historical cost measurements
depicts the revenues and expenses of a company
Income Statement
over a given time period
proceeds from the goods or services offered for
Revenue
sale by a company
