WGU D103 Intermediate Accounting - Module 2
summary (financial reporting framework) Exam |
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Terms in this set (77)
How does a company choose an By determining which alternative provides the most
acceptable accounting method, the useful information for decision-making purposes
amount and types of information to (decision-usefulness)
disclose, and the format in which to
present it?
Fundamental Quality—Relevance one of the two fundamental qualities that make
accounting information useful for decision-making.
xxx and related ingredients of this fundamental
quality are shown Predictive value, Confirmatory,
Materiality.
Faithful representation one of the is the second fundamental quality that makes
two fundamental qualities that make accounting information useful for decision-making.
accounting information useful for xxxx and related ingredients of this fundamental
decision-making. Relevance and quality are shown below.
related ingredients of this Completeness, Neutrality, Free From Error
fundamental quality are shown
below
,Assets Probable future economic benefits obtained or
controlled by a particular entity as a result of past
transactions or events.
Liabilities Probable future sacrifices of economic benefits
arising from present obligations of a particular
entity to transfer assets or provide services to other
entities in the future as a result of past transactions
or events.
Equity Residual interest in the assets of an entity that
remains after deducting its liabilities. In a business
enterprise, the equity is the ownership interest.
Investments by Owners. Increases in net assets of a particular enterprise
resulting from transfers to it from other entities of
something of value to obtain or increase ownership
interests (or equity) in it. Assets are most commonly
received as investments by owners, but that which
is received may also include services or satisfaction
or conversion of liabilities of the enterprise.
Distributions to Owners Decreases in net assets of a particular enterprise
resulting from transferring assets, rendering
services, or incurring liabilities by the enterprise to
owners. Distributions to owners decrease
ownership interests (or equity) in an enterprise.
Comprehensive Income. Change in equity (net assets) of an entity during a
period from transactions and other events and
circumstances from nonowner sources. It includes
all changes in equity during a period except those
resulting from investments by owners and
distributions to owners.
, Revenues Inflows or other enhancements of assets of an
entity or settlement of its liabilities (or a
combination of both) during a period from
delivering or producing goods, rendering services,
or other activities that constitute the entity's
ongoing major or central operations.
Expenses Outflows or other using up of assets or incurrences
of liabilities (or a combination of both) during a
period from delivering or producing goods,
rendering services, or carrying out other activities
that constitute the entity's ongoing major or central
operations.
Gains Increases in equity (net assets) from peripheral or
incidental transactions of an entity and from all
other transactions and other events and
circumstances affecting the entity during a period
except those that result from revenues or
investments by owners.
Losses Decreases in equity (net assets) from peripheral or
incidental transactions of an entity and from all
other transactions and other events and
circumstances affecting the entity during a period
except those that result from expenses or
distributions to owners.5
1/1 Predictive value, confirmatory value, and
What is an ingredient of the materiality are all ingredients of the fundamental
fundamental quality of relevance? quality of relevance.
What is an enhancing quality of Comparability
financial statements
summary (financial reporting framework) Exam |
Questions and Answers | Verified Solutions | 2026
Edition | Pass Guaranteed
Save
Terms in this set (77)
How does a company choose an By determining which alternative provides the most
acceptable accounting method, the useful information for decision-making purposes
amount and types of information to (decision-usefulness)
disclose, and the format in which to
present it?
Fundamental Quality—Relevance one of the two fundamental qualities that make
accounting information useful for decision-making.
xxx and related ingredients of this fundamental
quality are shown Predictive value, Confirmatory,
Materiality.
Faithful representation one of the is the second fundamental quality that makes
two fundamental qualities that make accounting information useful for decision-making.
accounting information useful for xxxx and related ingredients of this fundamental
decision-making. Relevance and quality are shown below.
related ingredients of this Completeness, Neutrality, Free From Error
fundamental quality are shown
below
,Assets Probable future economic benefits obtained or
controlled by a particular entity as a result of past
transactions or events.
Liabilities Probable future sacrifices of economic benefits
arising from present obligations of a particular
entity to transfer assets or provide services to other
entities in the future as a result of past transactions
or events.
Equity Residual interest in the assets of an entity that
remains after deducting its liabilities. In a business
enterprise, the equity is the ownership interest.
Investments by Owners. Increases in net assets of a particular enterprise
resulting from transfers to it from other entities of
something of value to obtain or increase ownership
interests (or equity) in it. Assets are most commonly
received as investments by owners, but that which
is received may also include services or satisfaction
or conversion of liabilities of the enterprise.
Distributions to Owners Decreases in net assets of a particular enterprise
resulting from transferring assets, rendering
services, or incurring liabilities by the enterprise to
owners. Distributions to owners decrease
ownership interests (or equity) in an enterprise.
Comprehensive Income. Change in equity (net assets) of an entity during a
period from transactions and other events and
circumstances from nonowner sources. It includes
all changes in equity during a period except those
resulting from investments by owners and
distributions to owners.
, Revenues Inflows or other enhancements of assets of an
entity or settlement of its liabilities (or a
combination of both) during a period from
delivering or producing goods, rendering services,
or other activities that constitute the entity's
ongoing major or central operations.
Expenses Outflows or other using up of assets or incurrences
of liabilities (or a combination of both) during a
period from delivering or producing goods,
rendering services, or carrying out other activities
that constitute the entity's ongoing major or central
operations.
Gains Increases in equity (net assets) from peripheral or
incidental transactions of an entity and from all
other transactions and other events and
circumstances affecting the entity during a period
except those that result from revenues or
investments by owners.
Losses Decreases in equity (net assets) from peripheral or
incidental transactions of an entity and from all
other transactions and other events and
circumstances affecting the entity during a period
except those that result from expenses or
distributions to owners.5
1/1 Predictive value, confirmatory value, and
What is an ingredient of the materiality are all ingredients of the fundamental
fundamental quality of relevance? quality of relevance.
What is an enhancing quality of Comparability
financial statements
