FAL 01 Financial Accounting Framework Practice Exam Questions And Correct Verified Answers.
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Course
FAL.
Institution
FAL.
GAAP Definition - correct answer Generally accepted accounting principles
Going Concern - correct answer The expectation that a business will continue indefinitely into the future.
The 5 Qualitative Characteristics of F...
GAAP Definition - correct answer Generally accepted accounting principles
Going Concern - correct answer The expectation that a business will continue
indefinitely into the future.
The 5 Qualitative Characteristics of Financial Statements - correct answer 1)
Relevant
2) Reliable
3) Comparable
4) Understandable
5) Free from constraints
5 Parts of the Financial Statement - correct answer 1) Balance sheet
2) Income Statement
3) Statement of cash flows
4) Notes to the financial statements
5) Statements of shareholders equity
Balance Sheet - correct answer Describes what a company owns and the
corresponding claims of creditors.
One of 2 primary statements
Income Statemnt - correct answer Depicts revenue, expenses, gains, losses, and
resulting income (or loss) over a period of time.
One of 2 primary statements.
, Statement of cash flows/Cash flow statements - correct answer Depicts cash
inflow/outflow during this period. Shows the changes in the cash position of a company.
One of two connecting statements.
Notes to Financial Statements/footnotes - correct answer Provides essential info
about the accounting principles applied, as well as additional info that helps performance.
Statement of shareholder's Equity - correct answer Depicts changes in the level of
investment by owners/shareholders. Part 2 of connecting statements.
4 parts of the Financial Accounting Framework - correct answer 1) Basic accounting
system rules
Qualitative characteristics of financial info - correct answer 1) Relevant
2) reliable
3) comparable
4) understandable
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