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1. The primary objective of financial reporting is to provide information. O Use

ID: 2609280 • Letter: 1

Question

1. The primary objective of financial reporting is to provide information. O Useful to capital providers. O Concerning the changes in financial position resulting from the income-producing efforts of the entity. O About a firm's management team O About a firm's financing and investing activities. 2 Statements of Financial Accounting Concepts issued by the FASB O Identify the conceptual framework within which accounting standards are developed. O Represent GAAP O Have been superseded by SFASs O Are subject to approval of the SEC. 3. In general, revenue is recognized when O A contract has been signed. O A purchase order has been received O The sales price has been collected O A good or service has been delivered to a customer 4 In depreciating the cost of an asset, accountants are most concerned with ORecognizing revenue in the appropriate period O Conservatism. O Full disclosure. O Recognizing expense in the appropriate period. Prev 7017

Explanation / Answer

1. Option (A) Useful to capital providers

2. Option (A) Identify the conceptual framework within which accounting standards are developed.

3. Option (D) A good or service has been delivered to a customer

4. Option (D) Recognising expense in the appropriate period

5. Option (D) Record expenses in the period that related revenues are recognised

6. False