Report on -Gaap and Financial Statements , Course - Financial Accounting
Executive Summary
GAAP, generally accepted accounting principles, are the rules for preparing the financial statements. There are specialized professionals FASB, SEC, AAA, FEI, IMA, AIMR and others for developing GAAP. There are 13 principles for preparing Financial Statement.
Business Entity Principle requires business to be separated from owner of the business. Going Concern principles requires the business to assume that the business will for long time. Revenue Recognition Principle considers business’s actual revenue for a accounting cycle. Objectivity principle requires evidence for everything.
Financial Statements show the financial condition, profitability, asset, liability and owners equity of a business. And help to compare with previous year or with other company. Income Statement gives the annual result of business transaction. Statement of Retained Earnings shows the company’s earnings after dividend. Balance Sheet shows financial condition .Statement of owner’s equity represents the equity of the owner’s .Statement of cash flows shows the cash flow of the company over the year. Return on Equity ratio represents the return on the owners investment in company.
Chapter 1 Introduction & Objective of the Report
1. Introduction: Report is a self-explanatory statement of facts relating to a specific subject and serves the purpose of providing information for decision making and follow up actions. It is a systematic presentation of ascertained facts about a specific event / subject. . Report is a summary of findings and recommendations about a particular matter / problem. Report is for the guidance of higher authorities including company executives and directors. Report facilitates timely decision and follow up measures.
Our report is on GAAP and Financial statement. The objectives of the report are shown
GAAP, generally accepted accounting principles, are the rules for preparing the financial statements. There are specialized professionals FASB, SEC, AAA, FEI, IMA, AIMR and others for developing GAAP. There are 13 principles for preparing Financial Statement.
Business Entity Principle requires business to be separated from owner of the business. Going Concern principles requires the business to assume that the business will for long time. Revenue Recognition Principle considers business’s actual revenue for a accounting cycle. Objectivity principle requires evidence for everything.
Financial Statements show the financial condition, profitability, asset, liability and owners equity of a business. And help to compare with previous year or with other company. Income Statement gives the annual result of business transaction. Statement of Retained Earnings shows the company’s earnings after dividend. Balance Sheet shows financial condition .Statement of owner’s equity represents the equity of the owner’s .Statement of cash flows shows the cash flow of the company over the year. Return on Equity ratio represents the return on the owners investment in company.
Chapter 1 Introduction & Objective of the Report
1. Introduction: Report is a self-explanatory statement of facts relating to a specific subject and serves the purpose of providing information for decision making and follow up actions. It is a systematic presentation of ascertained facts about a specific event / subject. . Report is a summary of findings and recommendations about a particular matter / problem. Report is for the guidance of higher authorities including company executives and directors. Report facilitates timely decision and follow up measures.
Our report is on GAAP and Financial statement. The objectives of the report are shown