CFAS Chapter 2

IT IS A SUMMARY OF TERMS AND CONCEPT THAT UNDERLIE THE PREPARATION AND PRESENTATION OF FS FOR EXERNAL USERS

• GAAP

• CONCEPTUAL FRAMEWORK

• ACCOUNTNG STANDARDS

• IFRS

THE CONCEPTUAL FRAMEWORK IS THE UNDERLYING THEORY FOR THE _____ OF ACCOUNTING STANDARDS AND ______ OF PREVIOUSLY ISSUED ACCOUNTING STANDARDS

• REVISION; DEVELOPMENT

• DEVELOPMENT; REVISION

• COMPARABILITY;

  NEUTRALITY

• DEVELOPING;

  COMPARING

TH E CONCEPTUAL FRAMEWORK PROIDES THE FOUNDATION OF STANDADS THAT; (3)

PURPOSES OF REVISED CONCEPTUAL FRAMEWORK:

TO ASSIST ______ BASED N CONSISTENT CONCEPTS

THE CONCEPTUAL FRAMEWORK FOR FINNCIAL REPORTN IS COMPLETE, COMPARABILITY, AND SINGLE DOCUMENT. IT IS PROMULGATED BY THE IASB.

• TRUE; FALSE

• FALSE; TRUE

• BOTH ARE TRUE

• BOTH ARE FALSE

ACTIVE RECALL (WRITE "DONE" IF YOU ANSWERED IT, "PASS" IF NOT)

EXPLAIN THE FOUR (4) PURPOSES OF REVISED CONCEPTUAL FRAMEWORK

THE _____ IS AN ATTEMPT T PROVIDE OVERALL ______ FOR ACCOUNTING

ACTIVE RECALL (WRITE "DONE" IF YOU ANSWERED IT, "PASS" IF NOT)

when to use the conceptual framework and when not to use

USERS OF FINANCIAL INFORMATION

THEY USE FINANCIAL INFO IN A VARIETY OF WAYS. FS MAY ASSIST THEM BY PROVIDING INFO ABOUT THE TREND AND THE RANGE OF ITS ACTIITIES

• PUBLIC

• EXISTING AND POTENTIAL INVESTORS

• GOVERNMENT AND ITS AGENCIES

• EMPLOYEES