Overview of Conceptual Framework & Financial Rptg
Assumptions
Principles
Qualitative Characteristics
Accounting Hodge Podge
100
To develop a coherent set of standards and rules. To solve new and emerging practical problems.
What is the purpose of a conceptual framework?
100
Economic entity Going-concern Monetary unit Periodicity
What are four assumptions of accounting?
100
This principle ensures that a company presents enough information so that a reasonably prudent investor is not misled.
What is the full disclosure principle?
100
These are the two most fundamental characteristics of accounting information?
What are relevance and faithful representation?
100
This factor must be considered when determining if the benefits of information are worth obtaining.
What are cost constraints?
200
It is the foundation of the conceptual framework and is used to provide financial information that is useful to present and potential investors, creditors, and lenders in making decisions about providing resources to the entity.
What is objective of financial reporting?
200
Also called the Continuity assumption, this assumption presumes a company will not be going bankrupt.
What is going concern?
200
This principle encompasses fair value and historical cost.
What is the measurement principle?
200
These are the four enhancing qualities of accounting information
What are comparability, verifiability, timeliness, and understandability
200

Generally Accepted Accounting Principles

What is GAAP?

300
This level of the conceptual framework contains the qualitative characteristics and the elements of the financial statements.
What is the second level of the conceptual framework?
300
This assumption deals with breaking up a companies economic activities into time frames, such as quarters and years.
What is periodicity?
300
The principle is used to guide the accounting when a company satisfies its performance obligation to a customer.
What is revenue recognition?
300
Predictive value, confirmatory value, and materiality are ingredients of this fundamental characteristic.
What is relevance?
300

April 15th

What is tax day or the day individual federal income taxes are due?  

400
These three concepts are included in the third level of the conceptual framework
What are recognition, measurement and disclosure concepts?
400
This is used to explain why the owners are separate from the company.
What is the economic entity assumption?
400
This principle matches efforts (expenses) with accomplishments (revenues)
What is the expense recognition principle?
400
These are the fundamental ingredients of faithful representation.
What are completeness, neutrality and being free from error?
400
This public accounting firm is responsible for accounting the ballots of the Oscars.
What is PwC?
500

He created the double entry accounting system


Who is Luca Pacioli?

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