ACCT 30110- Final Exam Guide - Comprehensive Notes for the exam ( 47 pages long!)
Document Summary
Study guide: the purpose of financial accounting. The item meets the definition of an element of financial statement: measurability. The item has a relevant attribute measurable with sufficient reliability: relevance. The information about it is capable of making a difference in user decisions: reliability. The information is representationally faithful: revenue: inflows of assets or settlements of liabilities resulting from verifiable, and neutral. providing a product or service to a customer, four approaches for expense recognition, based on an exact cause-and-effect relationship, ex. Cogs: by associating an expense with the revenues recognized in a specific time period, ex. Monthly salaries: by a systematic and rational allocation to specific time periods, ex. Advertising costs: in the period incurred, without regard to related revenue, as indicated in sfac 5, gaap currently employs a (cid:498)mixed attribute(cid:499, gaap currently employs a (cid:498)mixed attribute(cid:499) measurement model.
