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5 Cards in this Set
- Front
- Back
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Who are the primary users of General Purpose Financial Reporting? |
All current and potential users: 1) Investors 2) Lenders 3) Other Creditor; anyone who extends credit to another firm |
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What are the Fundamental Qualitative Characteristics of Useful Financial Information?
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1) Relevance = Usefulness -Predictive Value = Help understand the future -Confirming Value = Feedback about past events -Materiality = Does it matter to the user 2) Faithful Representation = Validity -Completeness -Neutrality = Even-Handedness -Freedom from Material Error |
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What are the Enhancing Qualitative Characteristics of Useful Financial Information?
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1) Comparability = Compare firm to firm 2) Verifiability = Another acct can replicate results 3) Timeliness = Older info is less useful 4) Understandability = F/S and F/N will provide enough info so users can understand |
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What are some of the fundamental assumptions under SFAC No.5?
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-Entity Assumption -Going Concern - move away from cost to FMV -Monetary Unit is stable -Periodicity Assumption - typically yearly -Historical Cost Principle -Revenue Recognition Principle - eared and realized or realizable -Matching, Full Disclosure, Conservatism (only if in doubt) Principle -Accrual Accounting |
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