It sets for the the theory, concepts and principles to ensure accounting standards are coherent and uniform
What is the coneptual framework?
100
Financial information that has predictive value, confirmatory value and materiality.
What is relevance?
100
Assets, liabilities and equity
What are point in time elements?
100
Revenues are only recognized when cash is received and expenses are only recognized with cash is paid.
What is the cash-basis of accounting?
100
The energizer bunny slogan is, "it keeps going and going and going and going....
What is going concern concept?
200
To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity
What is the objective of financial reporting?
200
The auditors insist that the financial statements must e complete, neutral and free from error.
What is faithful representation?
200
revenues, gains, expenses, losses, comprehensive income, investments by owners and distributions to owners
What are period of time elements?
200
historical cost, current cost, current market value, net realizable value and present value of future cash flows.
What are the bases of measurement?
200
Sarah advised her client that he should not put his personal funds into his corporation or use the corporation to pay for his personal expenses.
What is business or economic entity concept?
300
Investors, lenders and other creditors
Who are the primary users of financial information?
300
Zack asks Amanda to invest in his company. Amanda listens to Zack's presentation and says, " It sounds great. l want to talk to your suppliers and your bank to confirm that your story is true before making a decision."
What is verifiability?
300
In the lecture the speaker referred to changes in equity from transactions that excluded distributions to owners and investments from owners.
What is comprehensive income?
300
Sam, the accountant at VVV company booked a journal entry after the company performed services and obtained assurance that payment would be received within 10 days.
What is revenue recognition principle?
300
Tyrone remarked, "I hate getting older. Who came up with the idea of tracking each year with 365 days. I disagree. For me one year should be 730 days.
What is periodicity assumption?
400
It provides a structure for developing new accounting standards and revising existing standards
What is the conceptual framework?
400
Tim makes $100/hr as an accountant. Tim wants to buy new shoes and insists on finding a bargain. He spends 10 hours doing internet research and 5 hours visiting stores. After spending 15 hours, Tim is happy because he saved paid $50 for a $90 shoe. This was a $40 savings.
What is cost constraint?
400
Carson received his first paycheck from his job. To his surprise he had to pay taxes which caused his net pay to be lower than expected. Nevertheless, he was happy to receive his own money.
What are revenues and expenses?
400
An asset has experienced a reduced (or eliminated) future benefit, or when a liability has been incurred or increased without an associated economic benefit.
What is the expense recognition principle?
400
This ignores inflation or deflation experienced in the economy in which the entity operates.
What is the monetary unit assumption?
500
Identifies other purposes for financial reporting such as: assisting preparers, auditors and users of financial statements?
What is IASB's conceptual framework?
500
Shanta's mom always told her two things, "Honey if you are on time then you are late. Arrive early. Two, when you speak don't be long and be clear. Be clear.
What is timeliness and understandability?
500
ZZZ company sells cars. In 2015, it sold a painting for $1,000 with an original cost of $500. It also sold an office building for $100,000 with an original cost of $120,000.
What are gains and losses? or What is a gain and a loss?
500
ZYX company has invested in custom made lollipops. These lollipops are made by only one company in the world. ZYX valued the lollipos on its financial statements by estimating the cost of the inputs into the lollipop and adjusting the cost upward by a selling factor.
What is level 3 of the fair value hierarchy?
500
A hit song written by an accountant goes like this:
I'm gonna live forever
I'm gonna seperate my self from the world
I'm gonna create a country where i print my own money
I'm gonna destroy the calendar with a hurl
What is the going concern concept?
What is the business and economic entity concept?
What is the monetary unit assumption?
What is the periodicity assumption?