F-A-THEORY

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F-A-THEORY: Test Your Accounting Knowledge

Welcome to the F-A-THEORY quiz, where you can challenge your understanding of key accounting concepts and principles. This quiz focuses on various aspects of financial accounting theory, including constraints, methods, and reporting standards.

Assess your knowledge on materiality, recognition, and realization.
Understand the differences between accounting approaches and principles.
Enhance your grasp on the foundational theories that govern financial reporting.

15 Questions4 MinutesCreated by LearningLedger123

A constitution and a coherent system of interrelated assumption principles that lead to a constant standard

A decrease in the Net Assets that has arisen from revenue generated activities.

Materiality constraint

σ� The technique state that intentionally ignoring significant mistakes or error in ground of immaterial

when capital end of the period exceed capital at the begging of the period

The difference between FCMC &PCMC called

Process of converting product or asset or services into cash or cash claim

Change in accounting method (FIFO to LIFO) treated as:

Example of recognizing revenue during production;

More faithfully because it reflects actual cash paid.

Focuses on the change in net asset (equity, capital) during the period from all economic event and transaction except owner’s transaction (contribution by owners) & (distribution “dividends” to owners).

Cost of providing information should not exceed the benefits from that information

Current obligations that have arisen from past events or transactions and that would provide future economic benefits

It ignores inflation

Nformation must be available when its needed, means having information available to decision-makers before it loses its relevancy.

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