Chapter 2. Conceptual Framework for Financial Reporting
LO 1. Describe the usefulness of a conceptual framework.
The need for a Conceptual Framework was to develop a coherent set of standards and
rules and to solve new and emergin
INCOME STATEMENT AND RELATED INFORMATION
WEEK 2 HOMEWORK NOTES
LO 1. Understand the uses and limitations of an income statement.
Income Statement: the report that measures the success of company operations
for a given period of ti
LO 1. Identify accounting topics where the time value of money is relevant.
The time value of money is fundamental to the measurement in GAAP, universal and
applied the same, regardless of whether a company follows GAAP or IFRS. The basic
time value conce
INTERMEDIATE ACCOUNTING I
Chapter 5. Balance Sheet and Statement of Cash Flows
LO 1. Explain the uses and limitations of a balance sheet
The statement of financial position is divided into five major parts:
1. Business - Operating assets and liabilities,
Chapter 1 Notes. Financial Accounting and Accounting Standards
The financial information in the financial statements identify, measure and communicate
financial information about economic entities to interested parties.
The purpose of infor
Why are accounting standards necessary? If you had to explain or define "generally accepted
accounting principles or standards," what essential characteristics would you include in your
Why are accounting standards necessary?
1. The only item that should be reported as cash is the Checking account balance of $925,000;
Certificate of deposit is a temporary investment, cash advance is reported as a receivable, and
the utility d
CA1-2 (pg 25):
1. The objective of financial statements emphasize a stewardship approach for reporting financial
a. False. General purpose financial statements are used to satisfy stewardship appr