Questions and Answers
The topic number for business combinations is ____.
805
The topic number for related party disclosures is ____.
850
The specific seven-digit Codification citation for the initial measurement of internal-use software is ____.
350-40-30
The specific seven-digit Codification citation for the subsequent measurement of asset retirement obligations is ____.
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The specific seven-digit Codification citation for the recognition of stock compensation is ____.
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Match the organizations with the groups they primarily represent:
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What is the primary objective of financial reporting?
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What do Statements of Financial Accounting Concepts issued by the FASB identify?
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When is revenue generally recognized?
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What are accountants most concerned with when depreciating the cost of an asset?
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What is the primary objective of expense recognition?
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The separate entity assumption states that, in the absence of contrary evidence, all entities will survive indefinitely.
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An obligation to transfer cash or other resources as a result of a past transaction is called a ____.
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Dividends paid by a corporation to its shareholders are classified as ____.
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An inflow of an asset from providing a good or service is referred to as ____.
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The financial position of a company is represented by its ____.
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An increase in equity during a period from non-owner transactions is known as ____.
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An increase in equity from peripheral or incidental transactions is termed a ____.
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A sale of an asset used in the operations of a business for less than the asset's book value results in a ____.
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The owners' residual interest in the assets of a company is called ____.
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An item owned by the company representing probable future benefits is called an ____.
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Revenues plus gains less expenses and losses result in ____.
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An owner's contribution of cash to a corporation in exchange for ownership shares of stock is termed an ____.
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An outflow of an asset related to the production of revenue is referred to as an ____.
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Pair associated terms with their definitions:
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Study Notes
Financial Accounting Standards Board (FASB) Codification
- Business Combinations: Topic number 805.
- Related Party Disclosures: Topic number 850.
- Initial Measurement of Internal-use Software: Codification citation 350-40-30.
- Subsequent Measurement of Asset Retirement Obligations: Codification citation 410-20-35.
- Recognition of Stock Compensation: Codification citation 718-10-25.
Groups Establishing GAAP
- Securities and Exchange Commission: Primarily represents users.
- Financial Executives International: Primarily represents preparers.
- American Institute of Certified Public Accountants: Primarily represents auditors.
- Institute of Management Accountants: Primarily represents preparers.
- Association of Investment Management and Research: Primarily represents users.
Objectives and Concepts of Financial Reporting
- Primary Objective: To provide useful information to capital providers.
- Statements of Financial Accounting Concepts: Establish the conceptual framework for accounting standards.
- Revenue Recognition: Recognized when a good or service is delivered to a customer.
- Expense Recognition: Focuses on recognizing expenses in the period related revenues are recognized.
- Separate Entity Assumption: Incorrectly understood as implying all entities will survive indefinitely.
Financial Statement Elements
- Recent Transactions: Obligations from past transactions classified as liabilities.
- Dividends: Recognized as distributions to owners.
- Inflow of Assets: Recorded as revenue from goods or services provided.
- Financial Position: Comprises assets, liabilities, and equity.
- Equity Increases: Refers to comprehensive income from non-owner transactions.
- Peripheral Transactions: Increases classified as gains; decreases are recorded as losses.
- Owner's Interest: Defined as equity in the assets of a company.
- Probable Future Benefits: Represented by assets owned by the company.
- Profit Measurement: Calculated as revenues plus gains less expenses and losses.
- Investments by Owners: Reflected as cash contributions for ownership shares.
- Revenue-Related Outflows: Classified as expenses regarding the production of revenue.
FASB Conceptual Framework Terms
- Predictive Value: Information useful for future predictions.
- Relevance: Information pertinent to current decisions.
- Timeliness: Availability of information prior to decision-making.
- Distribution to Owners: Decrease in equity due to owner's transfers.
- Confirmatory Value: Information that confirms expectations.
- Understandability: Clarity of information in relation to decisions.
- Gains: Increases in equity from peripheral or incidental transactions.
- Faithful Representation: Accuracy between measures and the represented phenomenon.
- Comprehensive Income: Change in equity from non-owner transactions.
- Materiality: Concerned with the impact size of an item on decision-making.
- Comparability: Important for evaluating different firms.
- Neutrality: Absence of bias in reporting.
- Recognition: Process of admitting information into financial statements.
- Consistency: Use of the same accounting practices over time.
- Cost Effectiveness: Balancing costs of information with its value.
- Verifiability: Consensus among different measurers of the same information.
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Description
Dive into the fundamentals of Intermediate Accounting with this homework-based flashcard set. Focus on understanding FASB Accounting Standards Codification and related topic numbers. Perfect for students looking to strengthen their grasp on accounting standards and citations.