Questions from Financial Reporting

Q: According to SFAC No. 2, relevance and reliability are the

According to SFAC No. 2, relevance and reliability are the two primary qualities that make accounting information useful for decision making. Comment on what is meant by relevance and reliability.

Q: SFAC No. 5 indicates that, to be recognized, an

SFAC No. 5 indicates that, to be recognized, an item should meet four criteria, subject to the cost-benefit constraint and materiality threshold. List these criteria.

Q: There are five different measurement attributes currently used in practice. List

There are five different measurement attributes currently used in practice. List these measurement attributes.

Q: Briefly explain the difference between an accrual basis income statement and a

Briefly explain the difference between an accrual basis income statement and a cash basis income statement.

Q: The cash basis does not reasonably indicate when the revenue was earned

The cash basis does not reasonably indicate when the revenue was earned and when the cost should be recognized. Comment.

Q: It is not important to know when cash is received and when

It is not important to know when cash is received and when payment is made. Comment.

Q: China Unicom (Hong Kong) Limited provides a full range of

China Unicom (Hong Kong) Limited provides a full range of telecommunications services, including mobile and fixed line service, in China. They are listed on the New York Stock Exchange and filed a For...

Q: Comment on what Section 404 of the Sarbanes Oxley Act requires of

Comment on what Section 404 of the Sarbanes Oxley Act requires of companies.

Q: Under the Sarbanes-Oxley Act, what must the financial statement

Under the Sarbanes-Oxley Act, what must the financial statement auditor do in relation to the company’s internal control?

Q: Comment on perceived benefits from Section 404 of the Sarbanes-Oxley

Comment on perceived benefits from Section 404 of the Sarbanes-Oxley Act.