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Describe the usefulness of a conceptual framework. |1 | |1, 2 |CA2-1 |
|2. Describe the FASB’s efforts to construct a conceptual | | | |CA2-1, CA2-2, CA2-3 |
|framework. | | | | |
|3. Understand the objectives of financial reporting. |2 | |1, 2 |CA2-2, CA2-3 |
|4. Identify the qualitative characteristics of accounting |3, 4, 5, 6, 8 |1, 2, 3, 4, 5 |2, 3, 4 |CA2-4, CA2-5 |
|information. | | | | …show more content…
The accrual system calls for associating related revenues and expenses. This becomes very difficult for an arbitrary time period with incomplete transactions in process at both the beginning and the end of the period. A number of accounting practices such as adjusting entries or the reporting of corrections of prior periods result directly from efforts to make each period’s calculations as accurate as possible and yet recognizing that they are only provisional in …show more content…
These costs are of a promotional nature. Promotional costs often are considered expenses of the period in which the expenditures occur due to the uncertainty in determining the time periods benefited (do they meet the definition of an asset?). It is likely that no decision is made concerning the life of a sample display house at the time it is erected. Past experience may provide some guidance in determining the probable life. A decision to tear down or alter a house probably is made when sales begin to lag or when a new model with greater potential becomes
|2. Describe the FASB’s efforts to construct a conceptual | | | |CA2-1, CA2-2, CA2-3 |
|framework. | | | | |
|3. Understand the objectives of financial reporting. |2 | |1, 2 |CA2-2, CA2-3 |
|4. Identify the qualitative characteristics of accounting |3, 4, 5, 6, 8 |1, 2, 3, 4, 5 |2, 3, 4 |CA2-4, CA2-5 |
|information. | | | | …show more content…
The accrual system calls for associating related revenues and expenses. This becomes very difficult for an arbitrary time period with incomplete transactions in process at both the beginning and the end of the period. A number of accounting practices such as adjusting entries or the reporting of corrections of prior periods result directly from efforts to make each period’s calculations as accurate as possible and yet recognizing that they are only provisional in …show more content…
These costs are of a promotional nature. Promotional costs often are considered expenses of the period in which the expenditures occur due to the uncertainty in determining the time periods benefited (do they meet the definition of an asset?). It is likely that no decision is made concerning the life of a sample display house at the time it is erected. Past experience may provide some guidance in determining the probable life. A decision to tear down or alter a house probably is made when sales begin to lag or when a new model with greater potential becomes