Acct 315 test 1

Acct 315 test 1 - Test #1 ch. 1, 2, 3 Objectives of...

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Test #1 ch. 1, 2, 3 Objectives of financial reporting o Provide info that is useful in investment and credit decisions o Provide info about enterprise resources, claims to those resources, and changes to them o Provide info that is useful in assessing cash flow prospects The most significant current source of generally accepted accounting principles is FASB Year end net assets would be overstated and current expenses would be understated as a result of failure to record depreciation of fixed assets, expiration of prepaid insurance, and accrued wages payable o Depreciation decreases assets => overstatement of assets o Depreciation increases expenses => understatement of expenses o Expiration of ppd insurance decreases assets => overstate assets o Expiration of ppd insurance increases expenses => understate exp Accounting information is considered to be relevant when it is capable of making a difference in a decision The purpose of the International Accounting Standards Board is to promote
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Acct 315 test 1 - Test #1 ch. 1, 2, 3 Objectives of...

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