Conceptual Framework Flashcards, test questions and answers
Discover flashcards, test exam answers, and assignments to help you learn more about Conceptual Framework and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Conceptual Framework and get quick solutions for your test.
We've found 5 Conceptual Framework tests
Conceptual Framework
Health Care System
Nursing
fundamental of nursing chapter 6:nursing theories and conceptual framework – Flashcards 32 terms

Margaret Bruce
32 terms
Preview
fundamental of nursing chapter 6:nursing theories and conceptual framework – Flashcards
question
a system of ideas that is presumed to explain a given phenomenon
answer
theory
question
fields of study in which the central focus is performance of a profession role , nursing teaching management, music.
answer
practice discipline
question
a group of related ideas, statements or concepts
answer
conceptual framework
question
theories that articulate a broad range of the significant relationships among the concepts of a discipline
answer
grand theroies
question
refers to a pattern of shared understandings and assumptions about reality and the world
answer
paradigm
question
greek word meaning "with" "pattern" four major concepts in nursing that can be superimposed on almost any work in nursing is called a
answer
metaparadigm
question
four concepts to be central to nursing
answer
clients enviroment health nursing
question
the individual or client are the recipients of nursing care includes families, groups, and communities
answer
client
question
internal and external surroundings that affect the client this includes people in the physical environment such as families friends or significant others
answer
enviroment
question
the degree of wellness or well being that the client experiences
answer
health
question
is the attributes , characteristics and actions of the nurse providing care on behalf, or in conjunction with, the client
answer
nursing
question
theories hat focus on the exploration of concepts such as pain, self esteem, learning and hardiness
answer
mid level or middle range theories
question
a theory used in academia to describe theories that help elucidate how social structure affect a wide variety of human experiences from art to social practices, in nursing critical theory research helps explain how these structures such as race gender sexual orientation and economic class affect client experiences and health outcomes
answer
critical theory
question
is a belief system, often an early effort to define nursing phenomena, and serves as the basis for later theoretical formulations, ex florence nightingale, orem, peplau
answer
philosophy
question
often considered the first nurse theorist she linked health with five environmental factors:pure or fresh air, pure water, efficient drainage,cleanliness, and light especially direct sunlight, deficiencies in these five factors produced lack of health or illness
answer
nightingale's enviromental theory
question
central to her theory is the existence of a therapeutic relationship between the nurse and the client, which involves four phases? (which are) (1)orientation- client seeks help and nurse assists (2) identification-the client assumes posture of dependence or independence in relation of the nurse(nurse understands needs) (3) exploitation-the client derives full value from what the nurse offers through the relationship(power shifts from the nurse to the client) (4) resoultion-old goals and needs are put to the side and new ones are adopted
answer
peplau's interpersonal relations model
question
she also describes nursing as a relation to the client and the clients environment, but unlike others sees the nurse concerned with both healthy and ill individuals and feels it is her role to have these individuals gain independence in meeting 14 fundamental needs: 1. breathing normally 2.eating and drinking adequately 3.eliminating body waste 4.moving and maintaining a desirable position 5.sleeping and resting 6.selecting suitable clothing 7. maintaining body tempature within normal range by adjusting clothing and modifying the environment 8.keeping the body clean and well groomed to protect the integument 9.avoiding dangers in the environment and avoid injuring others 10. communicating with other in expressing emotions fears or opinions 11.worshipping according to ones faith 12.working in such a way that one feels a sense of accomplishment 13.playing or participating in various forms of recreation 14. learning, discovering,or satisfying the curiosity that leads to normal development and health and using available health physicality's
answer
hendersons definition of nursing
question
she views the persona as an irreducible whole, the while being greater than the sum of its parts, she states humans are dynamic energy fields in continuous exchange with environmental files both of which are infinite; both human and environmental fields are characterized by pattern, a universe of open systems and four dimensionality 1.is an irreductable, four dimensional energy field identified by a pattern 2.manifests characteristics different from the sum of the parts. 3. interacts continuously and creatively with the environment 4.as a sentient being, participates creatively in change
answer
Martha rogers' science of unitary human beings
question
her theory includes three related concepts:self care, self care deficit, and nursing systems
answer
dorothea orem's general theory of nursing
question
her theory offered insight to nurses interaction with individuals and groups within the environment . it highlights the importance of a clients participation in decisions that influence care and focuses on both the process of nurse- client interaction and the outcomes of care
answer
imogene king's theory of attainment theory
question
she developed a model based on the individuals relationship to stress the reaction to it and reconstitution factors that are dynamic in nature reconstitution is the state of adaptation to stressors nursing interventions focus on retaining or maintaining system stability, these interventions are carried out in three preventive levels:primary secondary, and tertiary
answer
betty neurons systems model
question
she focus on the individual as a biopsychosocial system that employs a feedback cycle on input (stimuli) throughout (control processes) and output (behaviors or adaptive responses ) the goal is to enhance life processes through adaptation in four adaptive modes 1. physiological mode 2.the self-cpnceot mode 3.the role function mode 4. interdependence mode
answer
sister roy's adaptation model
question
she emphasizes that human caring , although a universal phenomenon varies among cultures she believes in order to assist diverse cultures there are 3 intervention modes 1. culture care preservation and maintenance 2.culture care accommodation, negation, or both 3.culture care restructuring and repaterning
answer
madeleine leininger cultural care diversity and universality theory
question
she believes that the practice of caring is essential to nursing , it is the unifying focus for practice translated into 10 different clinical criterias 1- 10 page 44
answer
jean watson human caring theory
question
whom proposes three assumptions about human becoming 1.freely choosing personal meaning in situations in the intersubjective process of relating value priorities 2.is a cocreating rhythmic patterns or relating in mutual process with the universe 3.is cotranscending multidimensionally with the emerging possibles
answer
parse's humanbecoming theory
question
a suppostion or system of ideas that is proposed to explain a given phenomenon best defines
answer
a theory
question
a group of related ideas or statements best defines
answer
a conceptual framework
question
a set of shared understandings and assumptions about reality and the world is a definition for
answer
a paradigm
question
the best explanation for describing nursing as a practice discipline
answer
nursing focuses on preforming the professional role
question
person, environment, health and nursing constitute the metaparadigm for nursing because they do which of the following
answer
can be used in any setting when caring for a client
question
which is an accurate statement about the role of nursing theory
answer
practice theories assist nurses to reflect on the effectiveness of what they do
question
the purpose of theory in science is to
answer
help scientists interpret phenomenon
Accounting
Conceptual Framework
Finance
Financial Accounting
Intermediate Accounting 1
Salaries And Wages Expense
SFAC no. 6, Elements of Financial Statements – Flashcards 30 terms

Marta Browning
30 terms
Preview
SFAC no. 6, Elements of Financial Statements – Flashcards
question
You obtain it or control it today. It will provide benefits in the future. It occurred as a result of a transaction.
answer
Assets.
question
You owe it as of today. You will sacrifice something in the future. It occurred as a result of a past transaction.
answer
Liabilities.
question
The owner's residual interest in the assets of an entity that remains after deducting liabilities.
answer
Equity (net assets)
question
Total assets minus total liability is net assets as well as
answer
stockholder's equity.
question
Transactions or events that change owners' equity include:
answer
Revenues and expenses. Gains and losses. Investments by owners. Distributions to owners. Changes within owners' equity (stock dividends).
question
Revenues are increases in assets or liabilities?
answer
Assets
question
Revenues are decreases in assets or liabilities?
answer
Liabilities.
question
Three characteristics of revenues are
answer
1) Accomplishments of the earning process. 2) Actual or expected cash inflows resulting from central operations. 3) Inflows reported gross
question
Example of revenue increasing assets
answer
DR Cash or AR CR sales revenue
question
Expenses are decreases in assets and increases in
answer
liabilities
question
Expenses decrease
answer
assets
question
Gains are
answer
increases in equity
question
Losses are
answer
decreases in equity
question
Increases in net assets resulting from transfers by other entities of something of value to obtain ownership is
answer
Investments by owners
question
Dividends are an example of
answer
distributions to owners
question
Comprehensive income is the change in equity during a period from transactions and other events from
answer
nonowner sources (all equity changes except investments and distributions by owners). FASB SFAC definition.
question
MCQ: According to FASB conceptual framework, which of the following is an essential characteristic of an asset: a) The claims to an asset's benefits are legally enforceable b) An asset is tangible c) An asset is obtained at a cost d) An asset provides future benefits
answer
The answer is D.
question
Under the FASB Statement of Financial Accounting Concepts 5, comprehensive income excludes changes in equity resulting from which of the following? a) Loss from discontinued operations b) Prior period error correction c) Dividends paid to stockholders d) Unrealized loss on securities classified as available for sale
answer
The answer is C. Comprehensive income is the change in equity during a period from transactions and other events from non-owner sources EXCEPT investments and distributions by owners. FASB SFAC definition.
question
According to the FASB conceptual framework, the process of reporting an item in the financial statements of an entity is: a) allocation b) matching c) realization d) recognition
answer
The answer is D. Recognition is putting words and numbers on financial statements, such as account titles and amounts.
question
According to the FASB conceptual framework, an entity's revenue may result from: a) a decrease in an asset from primary operations b) an increase in an asset from incidental transactions c) an increase in a liability from incidental transactions d) a decrease in a liability from primary operations
answer
Revenues increase assets or reduce liabilities, which increases assets. Incidental transactions are GAINS OR LOSSES. Primary operations are revenues. A decrease in a liability from primary operations will increase revenues. The answer is D.
question
Economic Entity Assumption:
answer
Economic activity can be identified with a particular unit of accountability. However you can define the entity by a higher level such as parent or a lower level such as subsidiary.
question
Going Concern Assumption is the business will have a long life. The fair value cost is relevant or irrelevant if the business is a going concern?
answer
Irrelevant. That is another reason to use historical value instead of fair value. Historical value is used for PPE.
question
The US Dollar is the common denominator for economic activity and provides an appropriate basis for accounting measurement and analysis.
answer
Monetary Unit Assumption
question
The economic activities of an enterprise can be divided into artificial time periods.
answer
Periodicity Assumption
question
Historical Cost Principle
answer
GAAP requires that most assets and liabilities be accounted for and reported on the basis of acquisition price because it's the most reliable valuation. (there are exceptions to this)
question
Revenue Recognition Principle
answer
Revenue is recognized when 1) realized or realizable and 2) earned. Revenues are realizable when assets received or held are readily converted to cash or claims to cash. Revenues are considered earned when an entity has substantially completed what it must do to be entitled to the benefits represented by the revenues. Recognition at the time of sale provides a reasonable test. Exceptions are recognition 1) DURING PRODUCTION 2) upon receipt of cash (installment sales method/cost recovery method), multiple deliverable revenue arrangements, and milestone method of recognition on research and development contracts.
question
Matching principle
answer
Expenses are to be matched to the revenues whenever it is reasonable and practical to do so.
question
Full Disclosure Principle
answer
Accountants use their judgment in deciding what is reported on financial statements Some items may appear in footnotes or supplementary information. Footnotes support or explain items. Supplementary information is less reliable, but relevant, such as segment reporting.
question
Conservatism
answer
When in doubt, choose the solution that will be least likely to overstate assets and income.
question
Which of the following accounting literature is not included in the FASB Accounting Standards Codification? a) AICPA Statements of Position b) FASB Statements c) Accounting Research Bullentins d) Statements of Auditing Standards
answer
The answer is D. Statements of Auditing Standards are issued by the AICPA for how to do audits.
Accounting
Conceptual Framework
Conceptual Framework For Financial Reporting
Finance
Generally Accepted Accounting Principles
ACG3131 Ch 2 – Flashcards 70 terms

Sonia Kelly
70 terms
Preview
ACG3131 Ch 2 – Flashcards
question
What is the conceptual framework intended to establish? A. The meaning of "present fairly in accordance with Generally Accepted Accounting Principles." B. Generally Accepted Accounting Principles in financial reporting by business enterprises. C. The objectives and concepts for use in developing standards of financial accounting and reporting. D. The hierarchy of sources of Generally Accepted Accounting Principles.
answer
C
question
According to the conceptual framework, the objectives of financial reporting for business enterprises are based on: A. The need for conservatism. B. Generally Accepted Accounting Principles. C. The needs of the users of the information. D. Reporting on management's stewardship.
answer
C
question
According to the FASB conceptual framework, which of the following is not an enhancing qualitative characteristic? A. Comparability. B. Verifiability. C. Timeliness. D. Confirmatory value.
answer
D
question
Under Statement of Financial Accounting Concepts (SFAC) 8, predictive value is an ingredient of the fundamental quality of A. Verifiability. B. Representational faithfulness. C. Relevance. D. Reliability.
answer
C
question
Under Statement of Financial Accounting Concepts (SFAC) 8, which of the following relates to both relevance and faithful representation? A. Completeness. B. Predictive value. C. Timeliness. D. Neutrality.
answer
C
question
According to the FASB Conceptual Framework, what does the concept of faithful representation in financial reporting include? A. Precision. B. Neutrality. C. Effectiveness. D. Certainty.
answer
B
question
Under Statements of Financial Accounting Concepts, comprehensive income includes which of the following?
answer
Gains and GM
question
According to the conceptual framework, the process of reporting an item in the financial statements of an entity is: A. Allocation. B. Matching. C. Realization. D. Recognition.
answer
D
question
Which of the following is an example of the expense recognition principle of associating cause and effect? A. Sales commissions. B. Depreciation of fixed assets. C. Officers' salaries. D. Allocation of insurance cost.
answer
A
question
Ande Co. estimates uncollectible accounts expense using the ratio of past actual losses from uncollectible accounts to past net credit sales, adjusted for anticipated conditions. The practice follows the accounting concept of: A. Substance over form. B. Going concern. C. Matching. D. Consistency.
answer
C
question
According to the conceptual framework, the usefulness of providing information in financial statements is subject to the constraint of: A. Representational faithfulness. B. Relevance. C. Consistency. D. Cost-benefit.
answer
D
question
Dividends
answer
Distributions to owners
question
Interest receivable
answer
assets
question
Issuance of preferred stock
answer
investments by owners
question
prepaid insurance
answer
assets
question
amortization
answer
expenses
question
cost of goods sold
answer
expenses
question
accounts payable
answer
liabilities
question
cash
answer
assets
question
equipment
answer
assets
question
gain on sale of equipment
answer
gains
question
Target Corporation prepares its financial statements in U.S. dollars.
answer
monetary unit
question
The financial statements of General Motors combine all of the activities of its subsidiaries.
answer
economic entity
question
Office Depot records depreciation on its equipment over their estimated useful lifes.
answer
going concern
question
It purchased 5,000 shares of Microsoft stock, which trades on the NASDAQ.
answer
level 1
question
The company purchased 500 shares of Anthony Technical Company, a start-up company. TravelCo used an internally developed model to evaluate the amount of the investment.
answer
level 3
question
It invested $10,000 in utility bonds of a small neighboring community. Although these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bonds.
answer
level 2
question
In developing accounting standards, the FASB attempts to determine that each proposed pronouncement will fill a significant need and that the costs imposed to meet the rule are justified in relation to overall benefits of the resulting information. What accounting assumption, principle, or constraint is being illustrated?
answer
cost constraint
question
In preparing financial reports, it is assumed that users of the reports have reasonable knowledge of business and economic activities. T or F
answer
T
question
The fundamental qualitative characteristics that make accounting information useful are relevance and verifiability. T or F
answer
F
question
Verifiability is solely an enhancing characteristic for faithful representation. T or F
answer
F
question
Relevant information only has predictive value, confirmatory value, or both. T or F
answer
F
question
Comparability pertains to the reporting of information in a similar manner for different companies as well as a company reporting under the same accounting policies over time. T or F
answer
T
question
Information that is a faithful representation is characterized as having predictive or confirmatory value. T or F
answer
F
question
Sprull Inc. switches from FIFO to average-cost to FIFO over a 2-year period. Which qualitative characteristic of accounting information is not followed?
answer
consistency
question
Assume that the profession permits the savings and loan industry to defer losses on investments it sells because immediate recognition of the loss may have adverse economic consequences on the industry. Which qualitative characteristic of accounting information is not followed?
answer
neutrality
question
The chairman of the SEC at one time noted, "If it becomes accepted or expected that accounting principles are determined or modified in order to secure purposes other than economic measurement, we assume a grave risk that confidence in the credibility of our financial information system will be undermined." Which qualitative characteristic of accounting information should ensure that such a situation will not occur?
answer
neutrality
question
What are the two fundamental qualities that make accounting information useful for decision-making?
answer
relevance and faithful representation
question
Davidson Inc. does not issue its first-quarter report until after the second quarter's results are reported. Which qualitative characteristic of accounting is not followed?
answer
timeliness
question
Identify the pervasive constraint developed in the conceptual framework.
answer
cost
question
Predictive value is an ingredient of which of the two fundamental qualities that make accounting information useful for decision-making purposes?
answer
relevance
question
Rubin Company is the only company in its industry to depreciate its plant assets on a straight-line basis. Which qualitative characteristic of accounting information may not be followed?
answer
comparability
question
What is the quality of information that enables users to confirm or correct prior expectations?
answer
confirmatory value
question
Murray Company has attempted to determine the replacement cost of its inventory. Three different appraisers arrive at substantially different amounts for this value. The president, nevertheless, decides to report the middle value for external reporting purposes. Which qualitative characteristic of information is lacking in these data?
answer
verfiability
question
Polley Co. has reported a positive trend in earnings over the last 4 years. In the current year, it reduces its bad debt allowance to ensure another positive earnings year. The impact of this adjustment is equal to 2% of net income. Is this material?
answer
yes
question
Linsmeier Co. expenses all capital equipment under $18,000 on the basis that it is immaterial. The company has followed this practice for a number of years. Is this material?
answer
no
question
Carnall Co. has a gain of $3.1 million on the sale of plant assets and a $3.3 million loss on the sale of investments. It decides to net the gain and loss because the net effect is considered immaterial. Carnall's income for the current year was $10 million. Is this material?
answer
no
question
Intangible assets are capitalized and amortized over periods benefited.
answer
expense recognition principle
question
Repair tools with purchase prices below $1,000 are expensed when purchased.
answer
materiality
question
Brokerage firms use fair value for purposes of valuing investments.
answer
measurement fair value principle
question
Each enterprise is kept as a unit distinct from its owner or owners.
answer
economic entity
question
All significant post-balance-sheet events are reported.
answer
full disclosure principle
question
Fair value changes of fixed assets are not recognized in the accounting records.
answer
measurement historical cost principle
question
Supplemental information is presented so that investors will not be misled.
answer
full disclosure principle
question
Revenue is recorded at point of sale.
answer
revenue recognition principle
question
All important aspects of bond indentures are presented in financial statements.
answer
full disclosure principle
question
Rationale for accrual accounting.
answer
expense recognition and revenue recognition
question
The use of consolidated statements is justified.
answer
economic entity
question
Reporting must be done at defined time intervals.
answer
periodicity principle
question
An allowance for doubtful accounts is established.
answer
measurement fair value principle
question
Goodwill is recorded only at time of purchase.
answer
measurement historical cost principle
question
A company charges its sales commission costs to expense.
answer
expense recognition principle
question
To be _______ accounting info must be capable of making a difference in a decision
answer
relevant
question
Information is _______ if omitting it or misstating it could influence decisions that users make in the basis of information
answer
material
question
Faithful representation consists of
answer
completeness, neutrality, free from error
question
Enhancing qualities consist of
answer
comparability, verifiability, timeliness, understandability
question
company that keeps its activity separate from its owners and other businesses
answer
economic entity
question
company to last long enough to fulfill objectives and commitments
answer
going concern
question
money is the common denominator
answer
monetary unit
question
company can divide its economic activities into time periods
answer
periodicity
Cause And Effect
Conceptual Framework
External Failure Costs
Frederick Winslow Taylor
Internal Failure Costs
Production & Operations Management Exam 3 – Flashcards 86 terms

Claire Forth
86 terms
Preview
Production & Operations Management Exam 3 – Flashcards
question
Pareto Analysis
answer
Technique for classifying problem areas according to degree of importance, and focusing on the most important.
question
Control Chart
answer
Voice of the process - A statistical chart of time-ordered values of a sample statistic used to monitor a processes to see if the process output is random and help detect the presence of correctable causes of variation.
question
Fishbone Diagram
answer
A diagram used to search for the cause of a problem by organizing problem-solving efforts by identifying categories of factors that might be causing problems. Also know as the cause-and-effect diagram.
question
Random Variation
answer
Natural variation in the output of a process, created by countless minor factors. variation in the output of a process, created by countless minor factors.
question
Assignable Variation
answer
In process output, a variation whose cause can easily be identified. Also know as special variation in Deming's terms.
question
Central Limit Theorem
answer
The distribution of sample averages tends to be normal regardless of the shape of the process distribution.
question
Control Limits
answer
The dividing lines between random and non-random deviations from the mean of the distribution. The two limits that separate random and non-random variation are the upper control limit and the lower control limit. A value that falls within these two limits suggests randomness, while a value on the outside of either limit suggests non-randomness.
question
UCL
answer
Upper Control Limit - Larger value
question
LCL
answer
Lower Control Limit - Smaller value
question
Type I Control Chart Error
answer
There is a small probability that a value will fall outside the limits even though only random variations are present. Also referred to as an alpha risk, where alpha is the sum of the probabilities in the two tails.
question
Type II Control Chart Error
answer
Widening limits reduces the probability of a type I error but makes it more difficult to detect non-random variations if they are present, which leads to concluding that a process is in control when it is really out of control.
question
Supply-Chain Management
answer
A total system approach to managing the entire flow of information, materials, and services from raw-material suppliers through factories and warehouses to the end customer. Activities include aggregation of inventory, information sharing, collaboration and coordination, and revenue sharing.
question
Centralized Inventories
answer
...
question
Decentralized Inventories
answer
...
question
Inventory Velocity
answer
The speed at which goods move through a supply chain.
question
The Bullwhip Effect
answer
Inventory oscillations that become increasingly larger looking backward through the supply chain.
question
Centralization
answer
Reduces safety stocks (pooling) and cycle stocks (economies of scale) so the company can offer better service for the same inventory investment or same service with smaller inventory investment. Cost savings are proportional to square root of # of locations pooled.
question
The Bullwhip Effect - Demand Uncertainty
answer
The magnification of variability in orders in the supply-chain: A lot of retailers each with little variability in their orders can lead to greater variability for a fewer number of wholesalers, and can lead to even greater variability for a single manufacturer. Variations in demand cause inventory fluctuations to fluctuate and get out of control.
question
Vendor-managed Inventory
answer
Vendors monitor goods and replenish retail inventories when supplies are low.
question
Efficient Supply Chain Purpose
answer
Supply predictable demand at low cost
question
Responsive Supply Chain Purpose
answer
Respond quickly to unpredictable demand
question
Efficient Supply Chain Role of Manufacturing
answer
High utilization rate
question
Responsive Supply Chain Role of Manufacturing
answer
Excess buffer capacity
question
Efficient Supply Chain Inventory Strategy
answer
High turns, minimize inventory
question
Responsive Supply Chain Inventory Strategy
answer
Buffers of parts of finished goods
question
Efficient Supply Chain Lead-time
answer
Shorten provided no increase in cost
question
Responsive Supply Chain Lead-time
answer
Invest aggressively in reducing
question
Efficient Supply Chain Choosing Suppliers
answer
Cost and Quality
question
Responsive Supply Chain Choosing Suppliers
answer
Speed, Flexibility, & Quality
question
Efficient Supply Chain Product-design Strategy
answer
Maximize performance and minimize cost
question
Responsive Supply Chain Product-design Strategy
answer
Modular, Postponement, Customization
question
Efficient Supply Chain Product
answer
Functional
question
Responsive Supply Chain Product
answer
Innovative
question
SCM Product Misfit
answer
Stockouts - lose sales Unacceptable lead times Lose competitive advantage
question
SCM Product Fit
answer
Accept uncertainty with innovative products Strive to reduce uncertainty Share information with suppliers Reduce lead times Hedge against remaining uncertainty
question
Types of Flow Management
answer
Product and service flow Information flow
question
Product and Service Flow
answer
Involves movement of goods and services from suppliers to customers as well as handling customer service needs and product returns
question
Information Flow
answer
Involves sharing forecasts and sales data, transmitting orders, tracking shipments, and updating order status
question
Financial Flow
answer
Involves credit terms, payments, and consignment and title ownership arrangements
question
Six Sigma
answer
A program designed to reduce the occurrence of defects to achieve lower costs and improved customer satisfaction.
question
Six Sigma Statistic
answer
Having no more than 3.4 defects per million opportunities in any process, product, or service.
question
Control Charts for Attributes
answer
Attributes generate data that are counted. P-chart and C-chart
question
C-Chart
answer
Control chart used to monitor the number of defects per unit.
question
P-Chart
answer
Control chart used to monitor the proportion of defectives in a process.
question
Control Charts for Variance
answer
Variables generate data that are measured. X bar charts and R charts
question
X Bar Chart
answer
Mean control chart used to monitor the central tendency of a process.
question
R Chart
answer
Range control chart used to monitor the process dispersion.
question
Process Capability
answer
Process variability relative to specification - Given a stable process, is the inherent variability of the process within a range that conforms to performance criteria Once a process has been determined to be stable, it is necessary to determine if the process is capable of producing output that is within an acceptable range. The variability of a process becomes the focal point of the analysis. - Process variability - Process capability - Tolerances or specifications - Control Limits
question
Process Variability
answer
Reflects the natural or inherent (i.e., random) variability in a process. It is measured in terms of the process standard deviation.
question
Process Control
answer
Are the variations random? Quality efforts that occur during the production stage including inspection and corrective action during production.
question
Feedback Control Principle
answer
Plan-Do-Study-Act Cycle Proactive quality management used for problem solving and improvement instead of traditional inspection
question
Building a Pareto Diagram
answer
1. Determine data classifications 2. Decide on time period 3. Total frequency of occurrence for each class 4. Draw axes on paper 5. Draw in the bars, begin on left with most frequent defect. 6. Label each bar. 7. Plot a line showing the cumulative total 8. Title
question
Multi-Vari Charts
answer
Plot the high-average-low values over time. Range between high and low measurements shows variability at one time and variability over time.
question
the voice of the customer: process capability
answer
specifications
question
six sigma process
answer
1. define problem 2. measure 3. analyze 4. improve 5. control (design strategy-proactive, control designed into system)
question
Specifications
answer
Tolerances - Established by engineering design or customer requirements. They indicate a range of values in which individual units of output must fall in order to be acceptable.
question
Robust design elements
answer
1. process simplification 2. standardization 3. poka-yoke
question
Improving process capability
answer
changing the process target value and or reducing the process variability inherent in a process through robust design elements
question
process simplification
answer
eliminate steps, reduce number of parts, use modular design
question
six sigma improvement project
answer
reduce defects, reduce costs, reduce product/ process variability, reduce deliver time, increase productivity, and customer satisfaction
question
Roles of six sigma
answer
1. Master black belt 2. Black belt 3. Green belt
question
master black belt
answer
Identify and rank potential projects, select/ evaluate candidates, manage program resources, serve as advocates for program. Have intensive training in quality tools.
question
black belt
answer
project team leaders responsible for implementing process improvement projects
question
green belt
answer
members of project teams
question
total quality management
answer
philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
question
Cross-Docking
answer
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage.
question
Closed-loop Supply Chain
answer
A manufacturer controls both the forward and reverse shipment of product.
question
Centralized Purchasing
answer
Purchasing is handled by one special department.
question
Avoidance
answer
Finding ways to minimize the number of items that are returned.
question
Decentralized Purchasing
answer
Individual departments or separate locations handle their own purchasing requirements.
question
Gatekeeping
answer
Screening returned goods to prevent incorrect acceptance of goods.
question
Information Velocity
answer
The speed at which information is communicated in a supply chain.
question
Logistics
answer
The movement of materials, services, cash, and information in a supply chain.
question
Purchasing Cycle
answer
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
question
Reverse Logistics
answer
The process of transporting returned items.
question
Radio Frequency Identification (RFID)
answer
A technology that uses radio waves to identify objects, such as goods in supply chains.
question
Strategic Partnering
answer
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.
question
Strategic Sourcing
answer
Analyzing the procurement process to lower costs by reducing waste and nonvalue-added activities, increase profits, reduce risks, and improve supplier performance.
question
Supply Chain
answer
A sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
question
Supply Chain Management
answer
The strategic coordination of the supply chain for the purpose of integrating supply and demand management.
question
Supply Chain Visibility
answer
A major trading partner can connect to its supply chain to access data in real time.
question
Third-party logistics (3-PL)
answer
The outsourcing of logistics management.
question
Traffic Management
answer
Overseeing the shipment of incoming and outgoing goods.
question
Vendor Analysis
answer
Evaluating the sources of supply in terms of price, quality, reputation, and service.
question
Vendor-managed inventory (VMI)
answer
Vendors monitor goods and replenish retail inventories when supplies are low.
question
Procurement
answer
The procurement department has responsibility for obtaining goods and services that will not detract from the quality of the organization's goods and services.
Accounting
Conceptual Framework
Finance
Intermediate Accounting 1
Intermediate ACCT 1 (ch. 2) – Flashcards 50 terms

Isabel Padilla
50 terms
Preview
Intermediate ACCT 1 (ch. 2) – Flashcards
question
Conceptual Framework
answer
Underlying financial accounting is important because it can lead to consistent standards and it prescribes the nature, function, and limits of financial accounting and financial statements
question
3 levels of Conceptual Framework
answer
1. Basic Objectives 2. Fundamental concepts (qualitative characteristics and elements 3. Recognition and Measurement Concepts (recognition, measurement and disclosure concepts)
question
What are the Statement of Financial Accounting Concepts intended to establish?
answer
The objectives and concepts for use in developing standards of financial accounting and reporting
question
Basic Objectives (first level of conceptual framework)
answer
The "why" purpose of accounting. Helps ensure that financial reporting achieves its objective Objective of financial reporting: to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders and other creditors in making decisions about providing resources to the entity
question
According to the FASB conceptual framework, the objectives of financial reporting for business enterprises are based on?
answer
The needs of the users of the information
question
Qualitative Characteristics of Accounting Information (second level: fundamental concepts)
answer
The FASB identified the qualitative characteristics of accounting information that distinguish better (more useful) information from inferior (less useful) info for decision making purposes
question
Fundamental Quality - Relevance (second level: fundamental concepts)
answer
To be relevant, accounting info must be capable of making a difference in decision. relevance is 1 of 2 fundamental qualities that make accounting info useful for decision making
question
3 ingredients of Relevance of fundamental quality
answer
-Predictive Value -Confirmatory Value -Materiality
question
Predictive Value (component of the fundamental quality of Relevance)
answer
Financial info has predictive value if it has value as an input to predictive processes used by investors to form their own expectations about the future ex: if potential investors are interested in purchasing common shares of UPS they may analyze its current resources and claims to those resources
question
Confirmatory Value (component of the fundamental quality of Relevance)
answer
Relevant info also helps users confirm or correct prior expectations ex: when UPS issues its year end financial statements, it confirms or changes past (or present) expectations based on previous evaluations
question
Fundamental Quality - Faithful Representation
answer
Means that the number and descriptions match what really existed or happened
question
3 ingredients of Faithful Representation of fundamental quality
answer
-Completness -Neutrality -Free from Error
question
Completeness (component of Faithful Representation of fundamental quality)
answer
Means that all the info that is necessary for faithful representation is provided
question
Neutrality (component of Faithful Representation of fundamental quality)
answer
Means that a company cannot select info to favor one set of interested parties over another
question
Free from Error (component of Faithful Representation of fundamental quality)
answer
An information item that is free from error will be more accurate (faithful) representation of a financial item
question
Enhancing Qualities of Fundamental Concepts (second level)
answer
-Comparability -Verifiability -Timeliness -Understandability
question
Comparability (enhancing quality of fundamental concepts)
answer
Information that is measured and reported in a similar manner for different companies
question
Verifiability (enhancing quality of fundamental concepts)
answer
Occurs when independent measures, using the same methods, obtain similar results
question
Timeliness (enhancing quality of fundamental concepts)
answer
means having info available to decision makers before it loses it capacity to influence decisions
question
Understandability (enhancing quality of fundamental concepts)
answer
Is the quality of info that lets reasonably informed users see its significance
question
According to the FASB conceptual framework, and entity's revenue may result from
answer
A decrease in a liability from primary operations
question
The 3rd level is made up of
answer
-Assumptions -Principles -Constraints
question
Third level: Assumptions
answer
The FASB set forth most of these concepts. Theses basic assumptions are: Economic Entity -company keeps its activity separate from owners and other businesses Going Concern -company to last long enough to fulfill objectives and commitments Monetary Unit -money is the common denominator Periodicity -company can divide it economic activities into time periods
question
Third Level: Principles
answer
Measurement -the most commonly used measurements are based on historical cost and fair value Revenue Recognition -requires that companies recognize revenue in the accounting period in which the performance obligation is satisfied Expense Recognition -"let the expense follow the revenues" Full Discloser -Providing info that is of sufficient importance to influence the judgment and decisions of an informer user. Provided through financial statements, notes to the financial statements and supplementary information
question
Third Level: Constraints
answer
Cost Constraints -cost of providing info must be weighed against the benefits that can be deriver from using it
question
What is true about the IASB and FASB conceptual frameworks?
answer
-The IASB conceptual framework does not identify the element comprehensive income -The existing IASB and FASB conceptual frameworks are organized in similar ways -The FASB and IASB agree that the objective of financial reporting is to provide useful info to investors and creditors
question
The issues that the FASB and IADB must address in developing a common conceptual framework include?
answer
-Should the characteristics of relevance be traded off in favor of info that is verifiable? -Should a single measurement method be used? -Should the common framework lead to standards that are principles base or rules based?
question
Accounting rule-making that relies on a body of concepts will result in _______ and ______ pronouncements
answer
Useful, Consistent
question
General purpose financial repots help users who?
answer
Lack the ability to demand all the financial info they need from an entity and therefore must rely, at least partly, on the info in financial reports
question
Standard setting that is based on personal conceptual framework will lead to?
answer
Different conclusions about identical or similar issues. As a result, standards will not be consistent with now another, and past decisions may not be indicative of future ones
question
Information that is decision-useful is useful to?
answer
info that is decision-useful to capital providers may also be useful to users of financial reporting who are not capital providers
question
The objective of financial reporting is the foundation from which
answer
the other aspects of the framework logically result
question
Qualitative characteristics being employed when companies in the same industry are using the same accounting principles. Is an example of what qualitative characteristic?
answer
Comparability
question
Quality of info that confirms users' earlier expectations. Is an example of what qualitative characteristic?
answer
Confirmatory Value
question
Imperative for providing comparisons of a company from period to period. Is an example of what qualitative characteristic?
answer
Comparability (consistency)
question
Ignores the economic consequences of a standard or rule. Is an example of what qualitative characteristic?
answer
Neutrality
question
Requires a high degree of consensus among individuals on a given measurement. Is an example of what qualitative characteristic?
answer
Verifiability
question
Predictive values us an ingredient of this fundament quality of information. Is an example of what qualitative characteristic?
answer
Relevance
question
4 qualitative characteristics that are related to both relevance and faithful representation. Is an example of what qualitative characteristic?
answer
Comparability, Verifiability, Timeliness, and Understandability
question
An item is not recorded because its effect on income would not change a decision. Is an example of what qualitative characteristic?
answer
Materiality
question
Neutrality is an ingredient of this fundamental quality of accounting information. Is an example of what qualitative characteristic?
answer
Relevance and Faithful Representation
question
Two fundamental qualities that make accounting info useful for decision making purposes. Is an example of what qualitative characteristic?
answer
Relevance and Faithful Representation
question
Issuance of interim reports is an example of what enhancing quality of relevance?
answer
Timeliness
question
Allocates expenses to revenues in the proper period. Is an example of which accounting assumption, principle, or constraint?
answer
Expense Recognition Principle
question
Indicates that fair value changes subsequent to purchase are not recorded in the accounts (not rev. recognition). Is an example of which accounting assumption, principle, or constraint?
answer
Measurements (historical cost principle)
question
Ensures that all relevant financial information is reported. Is an example of which accounting assumption, principle, or constraint?
answer
Full discloser Principle
question
Rationale why plant assets are not reported at liquidation value (not historical cost principle). Is an example of which accounting assumption, principle, or constraint?
answer
Going Concern Assumption
question
Indicates that personal and business record keeping should be separately maintained. Is an example of which accounting assumption, principle, or constraint?
answer
Economic Entity Assumption
question
Separates financial information into time periods for reporting purposes. Is an example of which accounting assumption, principle, or constraint?
answer
Periodicity Assumption
question
Assumes that the dollar is the "measuring stick" used to report on financial performance. Is an example of which accounting assumption, principle, or constraint?
answer
Monetary Unit Assumption