SUBJECT: ANALYSIS OF FINANCIAL STATEMENT TOPIC: ACCOUNTING PRINCIPLES ACCOUNTING Generally Accepted Accounting Principles refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards. GAAP includes the standards‚ conventions‚ and rules accountants follow in recording and summarizing‚ and in the preparation of financial statements. Financial Accounting is information that must be assembled and reported
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The basic accounting concepts have defined the conception of the preparation of financial statements and the process of preparation in the UK is well regulated. But financial accounting requires a fair amount of flexibility in some certain areas‚ so the need of judgements and estimations for accounts preparers is demand. Meanwhile it leaves a significant approach in accounting treatments. For example‚ when organizations decide which of several inventory valuation methods to utilize; managers make
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Part I. A. Generally Accepted Accounting Principles. GAAP is not a fixed set of rules. It is a guideline or more precisely a group of objectives and concepts that have evolved over 500 years from the basic concepts of Luca Pacioli set forth in the 1400s. It governs how financial statements are prepared and presented in the United States. The Financial Accounting Standards Boards (FASB)‚ the American Institute of Certified Public Accountants and the Securities and Exchange Commission (SEC)
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Accountants use generally accepted accounting principles (GAAP) to guide them in recording and reporting financial information. GAAP comprises a broad set of principles that have been developed by the accounting profession and the Securities and Exchange Commission (SEC). Two laws‚ the Securities Act of 1933 and the Securities Exchange Act of 1934‚ give the SEC authority to establish reporting and disclosure requirements. However‚ the SEC usually operates in an oversight capacity‚ allowing the FASB
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Biblical Principles Applied to Accounting When most people think of business they picture a bunch of fat cats in suits stealing from the poor in order to fill their own pockets. The reality is that for the most part that couldn’t be further from the truth. Hard work‚ innovation‚ and honesty make up the true business man’s credentials. Jesus could have possibly learned some of these traits when he worked at his father’s business as a carpenter. Accounting is the numbers side
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n [pic] American International University-Bangladesh Summer 2007 Principles of Accounting (Section B) For CS‚ CSE‚ COE‚ EEE Students Course Outline |Course Teacher : |Shamarukh Aziz Bhuiyan (Angela) | | | | |Credit:
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set of accounting criteria used to develop medical centers financial statements are known as generally accepted accounting principles (GAAP). GAAP are a mixture of respected criteria created by Securities and Exchange Commission (SEC) and accountants. The SEC has authority granted by The Securities Act of 1933 and the Securities Exchange Act of 1934‚ to determine reporting and disclosure requirements. Oversight is the general functions of the SEC‚ granting the Governmental Accounting Standards
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CHAPTER 3 THE REPORTING ENTITY AND CONSOLIDATED FINANCIAL STATEMENTS ANSWERS TO QUESTIONS Q3-1 The basic idea underlying the preparation of consolidated financial statements is the notion that the consolidated financial statements present the financial position and the results of operations of a parent and its subsidiaries as if the related companies actually were a single company. Q3-2 Without consolidated statements it is often very difficult for an investor to gain an understanding
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Chapter 4 : Account Titles and Preparation of Financial Statements | Article 14 : The balance sheet items shallbe categorized as follows: 1. Assets. (1) Current assets. (2) Funds and long-term investments. (3) Property‚ plant and equipment. (4) Depletable assets. (5) Intangible assets.
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Accounting Assumptions‚ Principles‚ and Constraints XACC/280 Accounting Assumptions‚ Principles‚ and Constraints The basic assumptions of accounting include the monetary unit assumption and economic entity assumption. The monetary unit assumption is described as what companies require as only transactional data that can be expressed in terms of money (Weygandt‚ Kimmel‚ & Kieso‚ 2008). The purpose of the monetary unit assumptions is to only reflect the financial impact of the business
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