Intermediate Accounting Ifrs Edition 4th - Chapter 1 10 Correctly Answered Questions Latest Update

Managerial Accounting {Ans: The process identifying, measuring, analyzing, and communicating financial information needed by management to plan, control, and evaluate a company's operations.}Financial Accounting {Ans: The process that culminates in the preparation of financial reports for use by both internal and external parties.}Characteristic of Accounting {Ans: The identification, measurement, and communication of financial information about economic entities to interested paties.}Financial Reporting {Ans: The financial information a company provides to help users with capital allocation decisions about the company}Objective (Purpose) of Financial Reporting {Ans: General-purpose: Provide financial information about the entity that is useful to present and potential equity investors or creditors in making decisions.}Financial Statemets {Ans: (1) Financial Position ; (2) (Comprehensive) Income Statements ; (3) Cash Flow ; (4) Changes in Equity ; (5) Note to Financial Statements.}Capital Allocation {Ans: The process of determining how and at what cost money is allocated among competing interest}Accrual Basis Accounting {Ans: A company records event that change its financial statements in the periods in which the event occurs, rather than only in the periods in which it receives or pays cash.}High-quality Accounting Standards {Ans: 1. Established by a single standards-setting body 2. Consistency