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Comprehensive Exam
Comprehensive Exam
25
Accounting
Graduate
10/31/2011

Additional Accounting Flashcards

 


 

Cards

Term
Assets   
Definition
probable future economic benefits obtained or controlled by a particular entity as a result of a past transaction.
Term
Liabilities   
Definition
probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of a past transaction. 
Term
Comprehensive income    
Definition
change in equity of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. 
Term
Equity   
Definition
difference between the entity's assets and its liabilities.    
Term

 

The fundamental qualitative characteristics of useful financial information are

                                                   .

 

Definition
relevance and faithful representation
Term
Relevant financial information is capable of                      in the decisions made by users.
Definition
making a difference
Term
Financial information is capable of making a difference in decisions if it has                                      , or both.
Definition
predictive value, confirmatory value
Term
Financial information has                        if it can be used as an                          employed by users to predict                         . Financial information need not be a prediction or forecast to have                        .
Definition

predictive value

input to processes

future outcomes

predictive value

Term
Financial information has                             if it provides feedback (confirms or changes) about previous evaluations.
Definition
confirmatory value
Term
Information is material if                                it could could influence decisions that users make on the basis of the information provided.
Definition
omitting or misstating
Term
To be useful, financial information not only must represent relevant phenomena, but it also must                        the phenomena that it purports to represent.
Definition
faithfully represent
Term
To be a perfectly faithful representation, a depiction would have three characteristics. it would be                         .
Definition
complete, neutral, and free from error
Term
 A                depiction includes all information necessary for a user to understand the phenomenon being depicted, including all necessary descriptions and explanations. 
Definition
complete
Term

 

A                       depiction is without bias in the selection or presentation of financial information. The depiction is not                  , weighted, or otherwise manipulated to increase the probability that financial information will be received favorably or unfavorably by users.

 

Definition

neutral

slanted

Term
Faithful representation does not mean               in all respects.
Definition
accurate
Term
Free from error means that there are no                        in the description of the phenomenon, and the process used to produce the reporting information has been                with no errors in the process. 
Definition

errors or omissions

selected and applied

Term
                                                            are qualitative characteristics that enhance the usefulness of information that is relevant and faithfully represented.
Definition
Comparability, verifiability, timeliness, and understandability
Term
                       is the qualitative characteristic that enables users to identify and understand similarities in, and differences among, items. 
Definition
Comparability
Term
                         refers to the use of the same methods for the same items, either from period to period within a reporting entity (which promotes intrafirm comparability) or in a single period across entities (which promotes inter firm comparability).
Definition
Consistency
Term
                         means that different knowledgeable and independent observers could reach consensus, although not necessarily complete agreement, that a particular depiction is a faithful representation. 
Definition
Verifiability
Term

 

Verification can be direct or indirect.                 verification means verifying an amount or other representation through direct observation, for example, by counting cash.           verification means checking the inputs to a model, formula, or other technique and recalculating the outputs using the same methodology. 

 

Definition

Direct

Indirect

Term

                      means having information available to decision makers in time to be cable of influencing their decisions.

Definition
Timeliness
Term
Classifying, characterizing, and presenting information clearly and concisely contributes to its                   
Definition
understandability
Term
Cost is a                         on the information that can be provided by financial reporting.
Definition
pervasive constraint
Term
Providers of financial information expend most of the effort involved in collecting, processing, verifying, and disseminating financial information, but           ultimately bear those costs in the form of reduced returns.            of financial information also incur costs of analyzing and interpreting the information provided. 
Definition

users

Users

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