AnyFlashcards
AnyFlashcards
Browse DecksGet Started
Public Deck

CPA Exam FAR - 50 Key Topics

Prepare for the CPA FAR section with 50 flashcards covering financial statements, assets, revenue, and government accounting.

AnyFlashcards50 cards

Preview

Front

What is the primary objective of general purpose financial reporting?

Back

To provide financial information that is useful to primary users in making decisions. Primary users include existing and potential investors, lenders, and other creditors.

Front

What are the two fundamental qualitative characteristics of useful financial information?

Back

Relevance and Faithful Representation Information must be capable of making a difference and accurately depict the economic phenomena.

Front

What are the three components of Relevance?

Back

Predictive Value, Confirmatory Value, and Materiality Predictive value helps forecast future outcomes; confirmatory value provides feedback about prior evaluations.

Front

What are the three components of Faithful Representation?

Back

Completeness, Neutrality, and Freedom from Error Neutrality means the selection or presentation of information is without bias.

Front

Name the four enhancing qualitative characteristics of financial information.

Back

Comparability, Verifiability, Timeliness, and Understandability These characteristics enhance the usefulness of information that is relevant and faithfully represented.

Front

What is the pervasive constraint on financial reporting?

Back

Cost Constraint The benefits of reporting information must justify the costs of collecting and presenting it.

Front

Define 'Comprehensive Income' according to the conceptual framework.

Back

The change in equity from non-owner sources. Includes all changes in equity during a period except those resulting from investments by and distributions to owners.

Front

What are the five measurement attributes used in financial statements?

Back

Historical cost, Current cost, Net realizable value, Current market value, and Present value. Historical cost is the most common; Fair value is used for many financial instruments.

Front

What is the presentation requirement for a single-step Income Statement?

Back

Total Expenses are subtracted from Total Revenues in one step. Does not separate operating from non-operating items or calculate gross margin.

Front

What are the components of Other Comprehensive Income (OCI)?

Back

Pension adjustments, Unrealized gains/losses on AFS debt securities, Foreign currency items, and Instrument-specific credit risk. Mnemonic: PUFI (or PUFER).

+ 40 more cards

Related Flashcard Decks

100 Most Common Spanish Words

100 cards

Photoshop Essentials - 35 Key Techniques

35 cards

SQL Mastery - 40 Essential Queries

40 cards

PMP Certification - 50 Key Concepts

50 cards

SAT Vocabulary - 75 High-Frequency Words

75 cards

Calculus I Fundamentals

50 cards
Browse all decks →

Ready to study?

Sign up for free to copy this deck and start learning with spaced repetition.

Get started for free