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What does the FASB stand for and do? - Financial Accounting Standards Board: They follow a due process so all stakeholders (investors, auditors, and companies) have a chance to provide input, thereby making standards that are generally accepted What does SEC stand for and do? - Securities and Exchange Commission: They oversee FASB but have a political bias. They have the final say but generally let FASB create the standards What are the 4 financial statements? - 1. Income Statement 2. Sta...

To address inconsistencies and weaknesses in revenue recognition, a comprehensive revenue recognition standard was developed entitled the A. Revenue from Contracts with Customers B. Principle-based Revenue Accounting C. Revenue Recognition Principle D. Rules-based Revenue Accounting - A. Revenue from contracts with customers The first step in the process for revenue recognition is to A. allocate transaction price to the separate performance obligations B. determine the transaction price ...

The information provided by financial reporting pertains to a. business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers b. individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers c. individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers d. an economy as a whole and to members of society as consume...

To address inconsistencies and weaknesses in revenue recognition, a comprehensive revenue recognition standard was developed entitled the A. Revenue from Contracts with Customers B. Principle-based Revenue Accounting C. Revenue Recognition Principle D. Rules-based Revenue Accounting - A. Revenue from contracts with customers The first step in the process for revenue recognition is to A. allocate transaction price to the separate performance obligations B. determine the transaction price ...

Accounting for costs of incentive programs for frequent customer purchases involves - Recording an expense and a liability each period The accounting concept that requires recognition of a liability for customer premium offer is - The matching principle When a material gain contingency is probable and the amount of the gain can be reasonably estimated, the gain should be - disclosed, but not recognized in the income statement The main difference between accounting for a rebate and a cash d...

Which need is the primary influence on the demand for financial information? - The need for user groups to make decisions regarding resource allocation Which organization is responsible for the oversight, financing, and administration of all accounting standard setting organizations in the US? - Financial Accounting Foundation (FAF) Three organizations that set financial accounting standards for US companies? - Committee on Accounting Procedures (CAP), Accounting Principles Board (APB), an...

providers of financial information - profit oriented companies, not for profit entities, households external users of financial information - investors, creditors, employees, banks, labor unions, customers, suppliers, gov regulatory agencies conceptual framework - underlying structure for the development of accounting standards GAAP - generally accepted accounting principles- body of accounting standards FASB - financial accounting standards board 3rd level of framework - constraints, ass...

Depreciation is not a matter of valuation - It is a process of cost allocation. Book value = - Carrying Value = Historical (original) cost - Accumulated depreciation What does the balance sheet show for the value of a depreciable asset? - Book value What are the types of depreciation? - 1.) Straight-line Method 2.) Accelerated Depreciation 3.) Double Declining-Balance Method 4.) Sum-of-the-years'-digits Method 5.) Units-of-output Method 6.) Working hours Method What method is used for ...

True or false: An annuity due is the same as an ordinary annuity. - False In an annuity due, the payment occurs at the beginning of the period. In an ordinary annuity, the payment occurs at the end of the period. In a deferred annuity, a two-step process can be used to calculate the present value of the annuity. The first step requires the calculation of the present value of the annuity at the beginning of the annuity period. The second step involves discounting the amount calculated in ste...

transactions recorded under accrual accounting - Records revenues when earned and expenses when incurred debit and credit - the left and right side of an account, does not imply increases or decreases normal balance - the expected balance in an account, the side that increases the value of the account cash basis accounting - companies only recognize revenue when cash is received and expenses when cash is paid temporary accounts - income statement accounts, dividends permanent accounts - ...