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CHAPTER 2
Conceptual Framework for
Financial Reporting
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics Questions
Brief Exercises Exercises
Concepts for Analysis
- Conceptual framework– general.
- Objective of financial reporting.
- Qualitative characteristics of accounting.
- Elements of financial statements.
- Basic assumptions. 12, 13, 14, 25 8, 9 6, 7, 9
- Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure.
- Cost constraint. 28, 29 3, 7 11
ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Learning Objectives Questions Brief Exercises Exercises
Concepts for Analysis
- Describe the usefulness of a conceptual framework.
1 1, 2 CA2-
CA2-
- Understand the objective of financial reporting.
2, 7 1, 2 CA2-
- Identify the qualitative characteristics of accounting information.
3, 4, 5, 6, 8 1, 2, 3, 4, 5 2, 3, 4 CA2-4, CA2-
- Define the basic elements of financial statements.
- Describe the basic assumptions of accounting.
- Explain the application of the basic principles of accounting.
CA2-5, CA2-6,
CA2-7, CA2-8,
CA2-10,
CA2-
- Describe the impact that the cost constraint has on reporting accounting information.
28, 29 3, 7 CA2-
ANSWERS TO QUESTIONS
- A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature, function, and limits of financial account- ing and financial statements. A conceptual framework is necessary in financial accounting for the following reasons: (1) It enables the FASB to issue more useful and consistent standards in the future. (2) New issues will be more quickly solvable by reference to an existing framework of basic theory. (3) It increases financial statement users’ understanding of and confidence in financial reporting. (4) It enhances comparability among companies’ financial statements.
LO: 1, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- The basic objective is 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.
LO: 2, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- “Qualitative characteristics of accounting information” are those characteristics which contribute to the quality or value of the information. The overriding qualitative characteristic of accounting infor- mation is usefulness for decision-making.
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- Relevance and faithful representation are the two primary qualities of useful accounting information. For information to be relevant, it should be capable of making a difference in a decision by helping users to form predictions about the outcomes of past, present, and future events or to confirm or correct expectations. Faithful representation of a measure rests on whether the numbers and descriptions match what really existed or happened.
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- The concept of materiality refers to the relative significance of an amount, activity, or item to informative disclosure, proper presentation of financial position, and the results of operations. Materiality has qualitative and quantitative aspects; both the nature of the item and its relative size enter into its evaluation.
An accounting misstatement is said to be material if knowledge of the misstatement will affect the decisions of the average informed reader of the financial statements. Financial statements are misleading if they omit a material fact or include so many immaterial matters as to be confusing. In the examination, the auditor concentrates efforts in proportion to degrees of materiality and relative risk and disregards immaterial items.
The relevant criteria for assessing materiality will depend upon the circumstances and the nature of the item and will vary greatly among companies. For example, an error in current assets or current liabilities will be more important for a company with a flow of funds problem than for one with adequate working capital.
The effect upon net income (or earnings per share) is the most commonly used measure of materiality. This reflects the prime importance attached to net income by investors and other users of the statements. The effects upon assets and equities are also important as are misstatements of individual accounts and subtotals included in the financial statements. The FASB is proposing a definition of materiality in the Conceptual Framework, which will be aligned with that in the securities laws and which can used in disclosure decisions.
Questions Chapter 2 (Continued)
There are no rigid standards or guidelines for assessing materiality. The lower bound of materiality has been variously estimated at 5% of net income, but the determination will vary based upon the individual case and might not fall within these limits. Certain items, such as a questionable loan to a company officer, may be considered material even when minor amounts are involved. In contrast a large misclassification among expense accounts may not be deemed material if there is no misstatement of net income.
LO: 3, Bloom: C, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- Enhancing qualities are qualitative characteristics that are complementary to the fundamental qualitative characteristics. These characteristics distinguish more-useful information from less- useful information. Enhancing characteristics are comparability, verifiability, timeliness, and understandability.
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- In providing information to users of financial statements, the Board relies on general-purpose financial statements. The intent of such statements is to provide the most useful information possible at minimal cost to various user groups. Underlying these objectives is the notion that users need reasonable knowledge of business and financial accounting matters to understand the information contained in financial statements. This point is important. It means that in the preparation of financial statements a level of reasonable competence can be assumed; this has an impact on the way and the extent to which information is reported.
LO: 2, Bloom: C, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: AICPA FC: Reporting, AICPA PC: Communication
- Comparability facilitates comparisons between information about two different enterprises at a particular point in time. Consistency, a type of comparability, facilitates comparisons between information about the same enterprise at two different points in time.
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- At present, the accounting literature contains many terms that have peculiar and specific meanings. Some of these terms have been in use for a long period of time, and their meanings have changed over time. Since the elements of financial statements are the building blocks with which the statements are constructed, it is necessary to develop a basic definitional framework for them.
LO: 4, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- Distributions to owners differ from expenses and losses in that they represent transfers to owners, and they do not arise from activities intended to produce income. Expenses differ from losses in that they arise from the entity’s ongoing major or central operations. Losses arise from peripheral or incidental transactions.
LO: 4, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
- Investments by owners differ from revenues and gains in that they represent transfers by owners to the entity, and they do not arise from activities intended to produce income. Revenues differ from gains in that they arise from the entity’s ongoing major or central operations. Gains arise from peripheral or incidental transactions.
LO: 4, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
- The four basic assumptions that underlie the financial accounting structure are: (1) An economic entity assumption. (2) A going concern assumption. (3) A monetary unit assumption. (4) A periodicity assumption.
LO: 5, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: Communication
Questions Chapter 2 (Continued)
- The fair value hierarchy provides insight into the priority of valuation techniques that are used to determine fair value. The fair value hierarchy is divided into three broad levels.
Fair Value Hierarchy
Level 1: Observable inputs that reflect quoted prices for Least Subjective identical assets or liabilities in active markets.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or through corroboration with observable data.
Level 3: Unobservable inputs (for example, a company’s own data or assumptions).
Most Subjective
As indicated, Level 1 is the most reliable because it is based on quoted prices, like a closing stock price in the Wall Street Journal. Level 2 is the next most reliable and would rely on evaluating similar assets or liabilities in active markets. At the least-reliable level, Level 3, much judgment is needed based on the best information available to arrive at a relevant and representationally faithful fair value measurement.
LO: 6, Bloom: K, Difficulty: Simple, Time: 5-7, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- The revenue recognition principle requires that companies recognize revenue in the accounting period in which the performance obligation is satisfied. In the case of services, revenue is recognized when the services are performed. In the case of selling a product, the performance obligation is met when the product is delivered. Companies follow a five-step process to analyze revenue arrangements to determine when revenue should be recognized: (1) Identify the contract(s) with the customer; (2) Identify the separate performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction price to separate performance obligations; and (5) Recognize revenue when each performance obligation is satisfied.
LO: 6, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- A performance obligation is a promise to deliver a product or provide a service to a customer. The revenue recognition principle requires that companies recognize revenue in the accounting period in which the performance obligation is satisfied. In the case of services, revenue is recognized when the services are performed. In the case of selling a product, the performance obligation is met when the product is delivered.
LO: 6, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- The five steps in the revenue recognition process are:
Step 1 Identify the contract(s) with the customer. A contract is an agreement between two parties that creates enforceable rights or obligations.
Step 2 Identify the separate performance obligations in the contract. A performance obligation is either a promise to provide a service or deliver a product, or both.
Step 3. Determine the transaction price. Transaction price is the amount of consideration that a company expects to receive from a customer in exchange for transferring a good or service.
Step 4. Allocate the transaction price to separate performance obligations. This is usually done by estimating the value of consideration attributable to each product or service.
Questions Chapter 2 (Continued)
Step 5. Recognize revenue when each performance obligation is satisfied. This occurs when the service is provided or the product is delivered.
Note that many revenue transactions pose few problems because the transaction is initiated and completed at the same time.
LO: 6, Bloom: C, Difficulty: Simple, Time: 5-7, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- Revenues are recognized when a performance obligation is satisfied–in the case of services, revenue is recognized when the services are performed Therefore, revenue for Selane Eatery should be recognized at the time the luncheon is served.
LO: 6, Bloom: AN, Difficulty: Simple, Time: 3-5, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- The president means that the difference between the fair value and the book value, should be recorded in the books as a ‘gain’. This item should not be entered in the accounts, however, because no performance obligation related to this machine has been created or satisfied, GAAP will allow the company to record a gain once the machine is sold and delivered to a buyer.
LO: 6, Bloom: AN, Difficulty: Simple, Time: 3-5, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- The cause and effect relationship can seldom be conclusively demonstrated, but many costs appear to be related to particular revenues and recognizing them as expenses accompanies recognition of the revenue. Examples of expenses that are recognized by associating cause and effect are sales commissions and cost of products sold or services provided.
Systematic and rational allocation means that in the absence of a direct means of associating cause and effect, and where the asset provides benefits for several periods, its cost should be allocated to the periods in a systematic and rational manner. Examples of expenses that are recognized in a systematic and rational manner are depreciation of plant assets, amortization of intangible assets, and allocation of rent and insurance.
Some costs are immediately expensed because the costs have no discernible future benefits or the allocation among several accounting periods is not considered to serve any useful purpose. Examples include officers’ salaries, most selling costs, amounts paid to settle lawsuits, and costs of resources used in unsuccessful efforts.
LO: 6, Bloom: AN, Difficulty: Simple, Time: 5-7, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- The four characteristics are: (1) Definitions—The item meets the definition of an element of financial statements. (2) Measurability—It has a relevant attribute measurable with sufficient reliability. (3) Relevance—The information is capable of making a difference in user decisions. (4) Reliability—The information is representationally faithful, verifiable, and neutral.
LO: 5, Bloom: K, Difficulty: Simple, Time: 3-5, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
- (a) To be recognized in the main body of financial statements, an item must meet the definition of an element. In addition the item must have been measured, recorded in the books, and passed through the double-entry system of accounting. (b) Information provided in the notes to the financial statements amplifies or explains the items presented in the main body of the statements and is essential to an understanding of the per- formance and position of the enterprise. Information in the notes does not have to be quanti- fiable, nor does it need to qualify as an element. (c) Supplementary information includes information that presents a different perspective from that adopted in the financial statements. It also includes management’s explanation of the financial information and a discussion of the significance of that information.
LO: 6, Bloom: C, Difficulty: Simple, Time: 5-7, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 2-
(a) 5. Comparability
(b) 8. Timeliness
(c) 3. Predictive value
(d) 1. Relevance
(e) 7. Neutrality
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) 5. Faithful representation
(b) 8. Confirmatory value
(c) 3. Free from error
(d) 2. Completeness
(e) 4. Understandability
LO: 3, Bloom: K, Difficulty: Simple, Time: 3-5, None, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) If the company changed its method for inventory valuation, the
consistency, and therefore the comparability, of the financial
statements have been affected by a change in the method of applying
the accounting principles employed. The change would require
comment in the auditor’s report in an explanatory paragraph.
(b) If the company disposed of one of its two subsidiaries that had been
included in its consolidated statements for prior years, no comment as
to consistency needs to be made in the CPA’s audit report. The compara-
bility of the financial statements has been affected by a business trans-
action, but there has been no change in any accounting principle
employed or in the method of its application. (The transaction would
probably require informative disclosure in the financial statements).
BRIEF EXERCISE 2-3 (continued)
(c) If the company reduced the estimated remaining useful life of plant
property because of obsolescence, the comparability of the financial
statements has been affected. The change is not a matter of consistency;
it is a change in accounting estimate required by altered conditions
and involves no change in accounting principles employed or in their
method of application. The change would probably be disclosed by a
note in the financial statements. If commented upon in the CPA’s
report, it would be as a matter of disclosure rather than consistency.
LO: 3, Bloom: AN, Moderate, Time: 10-15, None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) Verifiability
(b) Comparability
(c) Comparability (consistency)
(d) Timeliness
LO: 3, Bloom: K, Difficulty: Simple, Time: 5-7, None, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
BRIEF EXERCISE 2-
Companies and their auditors for the most part have adopted the general
rule of thumb that anything under 5% of net income is considered not material.
Recently, the SEC has indicated that it is okay to use this percentage for
the initial assessment of materiality, but other factors must be considered.
For example, companies can no longer fail to record items in order to meet
consensus analyst’s earnings numbers, preserve a positive earnings trend,
convert a loss to a profit or vice versa, increase management compensation,
or hide an illegal transaction like a bribe. In other words, both quantitative
and qualitative factors must be considered in determining when an item is
material.
(a) Because the change was used to create a positive trend in earnings,
the change is considered material.
(b) Each item must be considered separately and not netted. Therefore
each transaction is considered material.
BRIEF EXERCISE 2-7 (continued)
(e) Should be debited to the Building account, as it is a part of the cost of
that plant asset which will contribute to operations for many years.
(f) As an expense, as the service has already been received; the contri-
bution to operations occurred in this period.
LO: 4, Bloom: AN, Difficulty: Simple, Time: 10-15, Analytic, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) Periodicity
(b) Monetary unit
(c) Going concern
(d) Economic entity
LO: 5, Bloom: K, Moderate, Time: 5-10, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) Net realizable value.
(b) Would not be disclosed. Liabilities would be disclosed in the order to
be paid.
(c) Would not be disclosed. Depreciation would be inappropriate if the
going concern assumption no longer applies.
(d) Net realizable value.
(e) Net realizable value (i.e., redeemable value).
LO: 5, Bloom: K, Moderate, Time: 10-15, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) Revenue recognition
(b) Expense recognition
(c) Full disclosure
(d) Measurement (historical cost)
LO: 6, Bloom: K, Moderate, 10-15, AACSB: Communication, AICPA BB: None, AICPA FC: AICPA FC: Measurement, Reporting, AICPA PC: None
BRIEF EXERCISE 2-
Investment 1—Level 3
Investment 2—Level 1
Investment 3—Level 2
LO: 6, Bloom: AN, Moderate, 5-10, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
BRIEF EXERCISE 2-
(a) Full disclosure
(b) Expense recognition
(c) Historical cost
LO: 5, 6, Bloom: C, Moderate, Time: 5-10, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
EXERCISE 2-3 (20–30 minutes)
(a)
(b)
Confirmatory Value.
Cost.
(g)
(h)
Timeliness.
Relevance.
(c) Neutrality. (i) Comparability.
(d) Comparability (Consistency.) (j) Verifiability.
(e) Neutrality.
(f) Relevance and Faithful
representation.
LO: 3, 7, Bloom: C, Moderate, Time: 25-30, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None
EXERCISE 2-4 (15–20 minutes)
(a)
(b)
(c)
Comparability.
Confirmatory Value.
Comparability (Consistency.)
(h)
(i)
Materiality.
Faithful representation.
(d)
(e)
Neutrality.
Verifiability.
(j) Relevance and Faithful
representation.
(f) Relevance. (k) Timeliness
(g) Comparability, Verifiability,
Timeliness, and
Understandability.
LO: 3, Bloom: C, Difficulty: Simple, Time: 15-20, AACSB: Communication, AICPA BB: None, AICPA FC: Reporting, AICPA PC: None Bloom:
EXERCISE 2-5 (15–20 minutes)
(a) Gains, losses.
(b) Liabilities.
(c) Investments by owners, comprehensive income.
(also possible would be revenues and gains).
(d) Distributions to owners.
(Note to instructor: net effect is to reduce equity and assets).
(e) Comprehensive income
(also possible would be revenues and gains).
(f) Assets.
(g) Comprehensive income.
(h) Revenues, expenses.
(i) Equity.
(j) Revenues.
(k) Distributions to owners.
(l) Comprehensive income.
LO: 4, Bloom: C, Difficulty: Simple, Time: 15-20, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
EXERCISE 2-6 (15–20 minutes)
(a) 7. Expense recognition principle.
(b) 5. Measurement (historical cost principle.)
(c) 8. Full disclosure principle.
(d) 2. Going concern assumption.
(e) 1. Economic entity assumption.
(f) 4. Periodicity assumption.
(g) 3. Monetary unit assumption.
LO: 5, 6, Bloom: C, Difficulty: Simple, Time: 15-20, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
EXERCISE 2-7 (20–25 minutes)
(a) Measurement (historical cost)
principle.
(i) Expense recognition and
revenue recognition principles.
(b) Full disclosure principle. (j) Economic entity assumption.
(c) Expense recognition principle. (k) Periodicity assumption.
(d) Measurement (fair value)
principle.
(l) Measurement (fair value)
principle.
(e)
(f)
Economic entity assumption.
Full disclosure principle.
(m) Measurement (historical cost)
principle.
(g) Revenue recognition principle. (n) Expense recognition principle.
(h) Full disclosure principle.
LO: 5, 6, Bloom: C, Moderate, Time: 20-25, AACSB: Communication, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
EXERCISE 2-8 (20–25 minutes)
(a) It is well established in accounting that revenues, expenses, and cost
of goods sold must be disclosed in an income statement. It might be
noted to students that such was not always the case. At one time,
only net income was reported but over time we have evolved to the
present reporting format.
(b) The proper accounting for this situation is to report the equipment as
an asset and the notes payable as a liability on the balance sheet.
Offsetting is permitted in only limited situations where certain assets
are contractually committed to pay off liabilities.
EXERCISE 2-9 (Continued)
(d) At the present time, accountants do not recognize price-level adjust-
ments in the accounts. Hence, it is misleading to deviate from the
measurement principle (historical cost) principle because conjecture
or opinion can take place. It should also be noted that depreciation is
not so much a matter of valuation as it is a means of cost allocation.
Assets are not depreciated on the basis of a decline in their fair market
value, but are depreciated on the basis of systematic charges of
expired costs against revenues. (Note to instructor: It might be called
to the students’ attention that the FASB does encourage supplemental
disclosure of price-level information.)
(e) Most accounting methods are based on the assumption that the busi-
ness enterprise will have a long life. Acceptance of this assumption
provides credibility to the measurement principle (historical cost)
principle, which would be of limited usefulness if liquidation were
assumed. Only if we assume some permanence to the enterprise is the
use of depreciation and amortization policies justifiable and
appropriate. Therefore, it is incorrect to assume liquidation as
Gonzales, Inc. has done in this situation. It should be noted that only
where liquidation appears imminent is the going concern assumption
inapplicable.
(f) The answer to this situation is the same as (b).
LO: 6, Bloom: AN, Moderate, Time: 20-25, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
EXERCISE 2-10 (20–25 minutes)
(a) Depreciation is an allocation of cost, not an attempt to value assets.
As a consequence, even if the value of the building is increasing,
costs related to this building should be matched with revenues on the
income statement, not as a charge against retained earnings.
(b) A gain should not be recognized until the inventory is sold. Accoun-
tants follow the measurement principle (historical cost) approach and
write-ups of assets are not permitted. It should also be noted that the
revenue recognition principle states that revenue should not be
recognized until a performance obligation is satisfied. In this case,
when the goods are delivered to the customer.
EXERCISE 2-10 (Continued)
(c) Assets should be recorded at the fair value of what is given up or the
fair market value of what is received, whichever is more clearly
evident. It should be emphasized that it is not a violation of the
measurement principle (historical cost) principle to use the fair value
of the stock. Recording the asset at the par value of the stock has no
conceptual validity. Par value is merely an arbitrary amount usually
set at the date of incorporation.
(d) The gain should be recognized when the equipment is delivered to the
customer. Deferral of the gain should not be permitted, because the
company has satisfied the performance obligation.
(e) It appears from the information that the sale should be recorded in
2018 instead of 2017. Revenue should be recognized when a
performance obligation is met. In this case, the performance
obligation is met when the order is delivered to the buyer. Accounts
receivable and Sales revenue should be recorded in 2018. It should be
noted that if the company is employing a perpetual inventory system
in dollars and quantities, a debit to Cost of Goods Sold and a credit to
Inventory is also necessary in 2018.
LO: 6, Bloom: AN, Moderate, Time: 20-25, Analytic, AICPA BB: None, AICPA FC: Measurement, Reporting, AICPA PC: None
