Kinh Nghiệm về Which of the following is not a basic assumption underlying the financial accounting structure 2022
Bùi Nhật Dương đang tìm kiếm từ khóa Which of the following is not a basic assumption underlying the financial accounting structure được Update vào lúc : 2022-10-09 19:02:31 . Với phương châm chia sẻ Bí quyết Hướng dẫn trong nội dung bài viết một cách Chi Tiết Mới Nhất. Nếu sau khi tham khảo nội dung bài viết vẫn ko hiểu thì hoàn toàn có thể lại Comments ở cuối bài để Tác giả lý giải và hướng dẫn lại nha.There are four basic assumptions of financial accounting: (1) economic entity, (2) fiscal period, (3) going concern, and (4) stable dollar. These assumptions are important because they form the building blocks on which financial accounting measurement is based. Some are reasonable representations of the real world, and others are not. As each assumption is discussed, try to understand why it has evolved, and be especially aware of those that fail to capture the world as it really is.
Nội dung chính- Which of the following is not an underlying assumption in financial accounting?What are the basic assumptions that underlie the financial accounting structure?What are the 3 underlying assumptions of financial reporting?What are the 5 basic accounting assumptions?
The most fundamental assumption of financial accounting involves the object of the performance measure. Should the accounting system provide performance information about countries, states, cities, industries, individual companies, or segments of individual companies? While it is important that each of these entities operate efficiently, financial accounting has evolved in response to a demand for company-specific measures of performance and financial position. Consequently, financial accounting reports provide information about individual, profit-seeking companies.
The process of providing information about profit-seeking entities implicitly assumes that they can be identified and measured. Individual companies must be entities in and of themselves, separate and distinct from both their owners and all other entities. This statement represents the economic entity assumption, the first basic assumption of financial accounting. This assumption ...
Term
T or F
Companies consider only quantitative factors in determining whether an item is material.
Term
T or F
Revenues, gains, and distributions to owners all increase equity.
Term
T or F
The conceptual framework for accounting has been discovered through empirical research.
Term
T or F
The economic entity assumption means that economic activity can be identified with a particular legal entity
Term
T or F
The IASB has issued a conceptual framework that is broadly consistent with that of the United States.
Term
T or F
Users of financial statements are assumed to have no knowledge of business and financial accounting matters by financial statement preparers.
Term
T or F
Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Term
T or F
Revenues are realizable when assets received or held are readily convertible into cash or claims to cash.
Term
T or F
Supplementary information may include details or amounts that present a different perspective from that adopted in the financial statements.
Term
T or F
The first level of the conceptual framework identifies the recognition and measurement concepts used in establishing accounting standards.
False Recognition and measuremetn are the 3rd level
TermT or F
The idea of consistency does not mean that companies cannot switch from one accounting method to another.
Term
T or F
A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards.
Term
According to Statement of Financial Accounting Concepts No. 2, timeliness is an ingredient of the primary quality of
DefinitionRelevance, Yes; Reliability, No
TermA company has a factory building that originally cost the company $250,000. The current fair value of the factory building is $3 million. The president would like to report the difference as a gain. The write-up would represent a violation of which accounting assumption or principle?
DefinitionTerm
Allowing firms to estimate rather than physically count inventory interim (quarterly) periods is an example of a trade-off between
Definitiontimeliness and verifiability.
TermDuring the lifetime of an entity accountants produce financial statements artificial points in time in accordance with the concept of
Definition. Objectivity, No; Periodicity, Yes
TermFinancial information exhibits the characteristic of consistency when
Definitionaccounting entities give accountable events the same accounting treatment from period to period.
TermInformation is neutral if it
Definitionis không lấy phí from bias toward a predetermined result.
TermNot adjusting the amounts reported in the financial statements for inflation is an example of which basic principle of accounting?
DefinitionTerm
The accounting principle of matching is best demonstrated by
Definitionassociating effort (expense) with accomplishment (revenue).
TermThe basic accounting concept that refers to the tendency of accountants to resolve uncertainty in favor of understating assets and revenues and overstating liabilities and expenses is known as the
DefinitionTerm
The overriding criterion by which accounting information can be judged is that of
Definitionusefulness for decision making.
TermValuing assets their liquidation values rather than their cost is inconsistent with the
Definitionhistorical cost principle.
TermWhat is a primary objective of financial reporting as indicated in the conceptual framework?
DefinitionProvide information that is helpful to present and potential investors, creditors, and other users in assessing the amounts, timing, and uncertainty of future cash flows.
TermWhat is a primary objective of financial reporting as indicated in the conceptual framework?
DefinitionProvide information that is helpful to present and potential investors, creditors, and other users in assessing the amounts, timing, and uncertainty of future cash flows.
TermDefinition
When in doubt, recognizing the option that is least likely to overstate assets and income.
TermWhen products (goods or services), merchandise, or other assets are exchanged for cash or claims to cash" is a definition of
DefinitionTerm
Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's stock price?
DefinitionTerm
Which basic assumption may not be followed when a firm in bankruptcy reports financial results?
DefinitionGoing concern assumption.
TermWhich of the following is not a basic assumption underlying the financial accounting structure?
DefinitionHistorical cost assumption.--Historical cost is a principal not an assumption
TermWhich of the following practices may not be an acceptable deviation from recognizing revenue the point of sale?
DefinitionA. Upon receipt of cash. B. During production.
C. Upon receipt of order.<-------->D. End of production.
TermWhich of the following is not a required component of financial statements prepared in accordance with generally accepted accounting principles?
DefinitionPresident's letter to shareholders.
TermWhich of the following elements of financial statements is not a component of compre-hensive income?
DefinitionA. Revenues
B. Distributions to owners <------>C. Losses
D. Expenses
According to Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability?
DefinitionA. Materiality B. Understandability C. Usefulness
D. All of these <---------<>
TermAccording to the FASB conceptual framework, earnings
DefinitionA. are the same as comprehensive income.
B. exclude certain gains and losses that are included in comprehensive income. <----------->C. include certain gains and losses that are excluded from comprehensive income.
D. include certain losses that are excluded from comprehensive income.
Company A issuing its annual financial reports within one month of the end of the year is an example of which ingredient of primary quality of accounting information?
DefinitionTerm
A soundly developed conceptual framework of concepts and objectives should
DefinitionA. increase financial statement users' understanding of and confidence in financial reporting. B. enhance comparability among companies' financial statements. C. allow new and emerging practical problems to be more quickly solved.
D. all of these.<--------<>
TermIn the conceptual framework for financial reporting, what provides "the why"--the goals and purposes of accounting?
DefinitionObjectives of financial reporting
TermIssuance of common stock for cash affects which basic element of financial statements?
DefinitionTerm
Representational faithfulness is an ingredient of which primary quality of information?
DefinitionTerm
The allowance for doubtful accounts, which appears as a deduction from accounts receivable on a balance sheet and which is based on an estimate of bad debts, is an application of the
DefinitionTerm
The quality of information that gives assurance that it is reasonably không lấy phí of error and bias and is a faithful representation is
DefinitionTerm
Valuing assets their liquidation values rather than their cost is inconsistent with the
Definitionhistorical cost principle.
TermUnder Statement of Financial Accounting Concepts No. 5, which of the following, in the most precise sense, means the process of converting noncash resources and rights into cash or claims to cash?
DefinitionTerm
What is a purpose of having a conceptual framework?
DefinitionA. To enable the profession to more quickly solve emerging practical problems. B. To provide a foundation from which to build more useful standards. C. Neither a nor b.
D. Both a and b. <---------<>
TermWhen information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of
DefinitionA. relevance. B. reliability. C. consistency.
D. none of these. <----->
TermWhich basic assumption is illustrated when a firm reports financial results on an annual basis?
DefinitionTerm
Which of the following is not a time when revenue may be recognized?
DefinitionA. At time of sale B. At receipt of cash C. During production
D. All of these are possible times of revenue recognition.<------------<>
TermWhich of the following is not a benefit associated with the FASB Conceptual Framework Project?
DefinitionA. A conceptual framework should increase financial statement users' understanding of and confidence in financial reporting. B. Practical problems should be more quickly solvable by reference to an existing conceptual framework. C. A coherent set of accounting standards and rules should result.
D. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply. <------<>
TermWhich of the following statements concerning the cost-benefit relationship is not true?
DefinitionA. Business reporting should exclude information outside of management's expertise. B. Management should not be required to report information that would significantly harm the company's competitive position. C. Management should not be required to provide forecasted financial information.
D. If needed by financial statement users, management should gather information not included in the financial statements that would not otherwise be gathered for internal use.<------<>
TermWhich of the following is a primary characteristic of useful accounting information?
DefinitionTerm
First level of the conceptual framework
DefinitionTerm
What are three objectives of the first level of the conceptputal framework?
Definition1. Useful to those making investment and credit decision, 2.Helpful to present and potential investors, creditors, and ohter users in assessing the amounts, timing and uncertainity of cash flows
3. aout the economic resources and the claims to those and the changes in them
TermSecond level of the conceptual framwork
Definition1.Qualitive characteristics of acconting information
2. the elements
What are the two primary and two secondary charatisics
DefinitionPrimary- 1. Relavance a)Predictive b) feedback c) Timliness (2) Reliablilty a)verifibiltiy b)faithful Repenstation c) Neutlaity
Secondary 3.Comparibilty 4. Consistency
TermDefinition
1. Assets2.Liabliliies3. equity4. investment by owner5distribution to owners6. omprehensive income7. revenue8. Expenses9. Gains
10 losses
TermWhat is the the third level of the conceptual framework
DefinitionRecongition and measurement concepts:
1. Assumptions 2. Principals 3. Constraints
what are the four assumptions
DefinitionEconomic entity assumptionGoing concern assumption monetary unit
perdiocity assumption
TermDefinition
measurement- hisotric Cost principal, ecomonic enity principal, fair value principalRevenue recognition principal-a)when realized or realiable b)when earned Expense recognition principal-a) let the expense follow the revenue b) rational and systematic allocation
Full disclosure principle-make a differnce in the decisions.
TermDefinition
1.cost-benfit2. materiality3. industry practise
4. conservatism
Which of the following is not an underlying assumption in financial accounting?
The correct answer is c. Matching is a fundamental principle to the accrual basis method of accounting, not an underlying assumptions of accounting. The underlying assumptions or concepts are the following: Business entity. Going-concern.What are the basic assumptions that underlie the financial accounting structure?
There are four basic assumptions of financial accounting: (1) economic entity, (2) fiscal period, (3) going concern, and (4) stable dollar. These assumptions are important because they form the building blocks on which financial accounting measurement is based.What are the 3 underlying assumptions of financial reporting?
The three main assumptions we will giảm giá with are – going concern, consistency, and accrual basis.What are the 5 basic accounting assumptions?
5 Key Accounting Assumptions. The Consistency Assumption.. The Going Concern Assumption.. The Time Period Assumption.. The Reliability Assumption.. The Economic Entity Assumption.. Tải thêm tài liệu liên quan đến nội dung bài viết Which of the following is not a basic assumption underlying the financial accounting structure