Questions from Intermediate Accounting

Q: Describe the primary users of the financial statements according to the conceptual

Describe the primary users of the financial statements according to the conceptual framework. List the components of the current conceptual framework.

Q: Explain the objective of financial reporting.

Explain the objective of financial reporting.

Q: Identify whether the following items are characteristics of information that are relevant

Identify whether the following items are characteristics of information that are relevant (REL) or a faithful representation (FR): Information that is neutral. Information that has decision-making imp...

Q: What is the recognition principle and when is an item considered recognized

What is the recognition principle and when is an item considered recognized?

Q: Describe the fundamental characteristics of financial information. Explain the enhancing characteristics

Describe the fundamental characteristics of financial information. Explain the enhancing characteristics of financial reporting information.

Q: Describe when financial information is a faithful representation.

Describe when financial information is a faithful representation.

Q: Explain the costs standard setters consider when comparing the cost of requiring

Explain the costs standard setters consider when comparing the cost of requiring information to the benefits to the users of having the information when setting a new standard.

Q: Discuss how well the historical cost concept satisfies the fundamental characteristics of

Discuss how well the historical cost concept satisfies the fundamental characteristics of relevance and faithful representation.

Q: Identify whether the following items are fundamental characteristics (FC) or

Identify whether the following items are fundamental characteristics (FC) or enhancing characteristics (EC): Comparable. Relevant. Timely. Understandable. Faithful representation. Verifiable

Q: Identify areas where managers make estimates and assumptions in accounting for accounts

Identify areas where managers make estimates and assumptions in accounting for accounts receivable.