1. What are the sources of GAAP that have the highest level of authority? BOSSII
    • Accounting Research Bulletins
    • APB Opinions
    • FASB Statements of Financial Accounting Standards
    • FASB Staff Position
    • FASB Interpretations
    • FASB Statement 133 Implementation Issues
  2. What are three objectives of financial reporting by business enterprises?
    • To Provide:
    • * Information useful in investing, credit, and simular decisions
    • * Information useful in accessing cash flow prospects
    • * Information about enterprise resources, claims to those resourses, and changes in them
  3. Name two pervasive constraints in the hierarchy of accounting qualities.
    • Benefit > Cost
    • Materiality
  4. Name the two primary decision-specific qualities of useful accounting information.
    Relevan and Reliability
  5. Name three elements of Releance.
    "Passing Feels Great"
    • Predictive Value
    • Feedback Value
    • Timeliness
  6. Name the three elements of reliability.
    • Nwutrality
    • Representational Faithfulness
    • Verifiability
  7. Name the two secondary characteristics of accounting informaiton.
    Comparability and Consistency
  8. What should a full set of financial statements include?
    • Statement of Financial Position (The Balance Sheet)
    • Statement of Earnings ( Income Statement)
    • Statement of Comprehensive Income
    • Statement of Cash Flow
    • Statement of Changes in Owner's Equity
  9. What is the difference between relization and recognition?
    • Realization: When sold and converted to cash (or claims to cash (AR))
    • Recognition: When record in the financial statements
  10. List the ten elements of financial statements.
    • Comprehensive Income
    • Revenues
    • Expenses
    • Gains
    • Losses
    • Assets
    • LIabilites
    • Equity ( of Net Assets)
    • Investments by Owners
Card Set
CPA EXAM: Financial Part 1