Quiz 01.17 – T/F Gains and Losses in Financial Reporting
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Gains and losses are incurred from the disposal of business assets above or below their book values, respectively.
Gains and losses are incurred from the disposal of business assets above or below their book values, respectively.
Comprehensive income is also known as net income.
According to the FASB’s conceptual framework, decision-useful information should possess the fundamental qualitative characteristics of relevance and timeliness.
Financial statements are required to be expressed in a particular monetary unit, which is a prerequisite of the monetary unit assumption.
According to the periodicity assumption, present value calculations must consider the number of compounding periods that occur in a year.
The FASB’s fair value measurement framework does not alter the conditions for applying fair value as per current GAAP.
The revenue/expense approach focuses on the importance of accurately determining revenue and expense amounts for each reporting period.
The asset/liability approach emphasizes the importance of matching assets and liabilities to determine which items should be reported on the balance sheet.
IFRS’s conceptual framework guides accounting practices when specific standards are not applicable.
The IFRS standard-setting process is not influenced by political pressure.