Accounting Cycle: CFAS and Financial Statements

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What is the purpose of the Accounting Cycle?

To prepare the unadjusted trial balance

To post transactions to the general ledger

To create financial statements (correct)

To identify transactions

Who are the users of financial reports prepared through Financial Accounting?

Employees, customers, suppliers, and competitors

Investors, creditors, managers, unions, and government agencies (correct)

Students, teachers, administrators, and parents

Partners, shareholders, consultants, and auditors

What do Accounting Standards specify?

How transactions and events are recognized, measured, presented, and disclosed in financial statements (correct)

How to determine the selling price of products

How to engage in business activities

How to record transactions in ledgers

Which body is responsible for setting international accounting standards?

IASB - International Accounting Standards Board Signup and view all the answers

What is the primary source of generally accepted accounting principles (GAAP)?

Accounting standards Signup and view all the answers

What is the main responsibility of the IFRS Interpretations Committee?

Assisting the IASB in resolving financial reporting issues Signup and view all the answers

What is the role of the IFRS Advisory Council?

Providing advice and council to the IASB Signup and view all the answers

Which organization is responsible for appointing members and reviewing effectiveness within the IFRS structure?

IFRS Foundation Signup and view all the answers

What is the purpose of the Monitoring Board within the international financial reporting structure?

Establishing a link between standard-setters and public authorities Signup and view all the answers

Which entity is responsible for developing a single set of high quality global financial reporting standards for general purpose financial statements?

IASB Signup and view all the answers

Accounting Cycle: CFAS and Financial Statements

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Questions and Answers

What is the purpose of the Accounting Cycle?

Who are the users of financial reports prepared through Financial Accounting?

What do Accounting Standards specify?

Which body is responsible for setting international accounting standards?

What is the primary source of generally accepted accounting principles (GAAP)?

What is the main responsibility of the IFRS Interpretations Committee?

What is the role of the IFRS Advisory Council?

Which organization is responsible for appointing members and reviewing effectiveness within the IFRS structure?

What is the purpose of the Monitoring Board within the international financial reporting structure?

Which entity is responsible for developing a single set of high quality global financial reporting standards for general purpose financial statements?

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