Conceptual Framework

Front

What organization defined accounting as a function that provides quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions?

Back

Accounting Standards Council (ASC)

Front

What is the analytical component of the accounting process?

Back

Identifying

Front

What is the process of preparing and distributing accounting reports to potential users of accounting information?

Back

Communicating

Front

Areas where a CPA can practice his/her profession: Private Accounting, Public Accounting, Government Accounting.

Back

Financial Accounting

Front

What is the highest accounting position in a private company?

Back

Controller

Front

The objectives of financial reporting for business enterprises are based on: The need for conservatism, Generally accepted accounting principles, The need of users of information, Reporting on management’s stewardship

Back

The need of users of information

Front

The economic entity assumption

Back

Is applicable to all forms of business organizations

Front

Which of the following is not a qualitative characteristic of financial statements? Materiality, Comparability, Understandability, Relevance

Back

Materiality

Front

Which area of public accounting means the examination of financial statements by a CPA for the purpose of expressing an opinion as to the fairness of the statements?

Back

External auditing

Front

They encompass the conventions, rules, and procedures necessary to define what accepted accounting practice is.

Back

Generally accepted accounting principles