T7 Sample Questions Answers

To show sources of funds and the manner in which those funds are employed

To account for changes in cash during the accounting period

To show details of the nature of a company’s operating activities

To reconcile the beginning and ending balances of stockholders’ equity

Business accounting

Cash basis accounting

IASB accounting

Accrual accounting

Statement of full disclosure

Statement of assets

Statement of changes in shareholders’ equity

Statement of accrual accounting

To show liability and equity and the manner in which those funds are employed in a manner which is useful for users of the statement

To account for changes in cash during the accounting period in a manner which is useful for users of the statement

To show details of the nature of a company’s operating activities in a manner which is useful for users of the statement

To reconcile the beginning and ending balances of stockholders’ equity in a manner which is useful for users of the statement

Short-term benefits

Post-employment benefits

Termination benefits

Long-term benefits

Standards Advisory Council (SAC)

International Accounting Standards Committee (IASC) Foundation

International Financial Reporting Interpretations Committee (IFRIC)

International Accounting Standards Board (IASB) staff

Cost and materiality

Predictive value and confirmatory value

Relevance and faithful representation

Timeliness and understandability

A residual interest in the assets of the entity after deducting all its liabilities

Faithful representation of the amount paid for a given item

Amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction

Quality of information that confirms users’ earlier expectations

Short-term benefits

Post-employment benefits

Termination benefits

Long-term benefits

Predictive value

Complete

Faithful representation

Relevance