Acc/537 Week 1 Basic Accounting Concepts

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Basic Accounting Concepts and Business Structures
Stacey Jordan
ACC537
April 18, 2011
Neil David

Generally accepted accounting principles allows the accounting profession to follow a recognized organization of objectives, to provide a structure for solving problems, to improve the understanding of financial statement and confidence in financial reporting, and to develop contrast among companies financial statements that can be generally accepted and universally practiced, “generally accepted” means that a reliable accounting organization has developed a standard of reporting that has been accepted because of the universal application (pg. 6, Kieso, Weygandt, & Warfield, 2007). There are four organizations that are evolved in the development on the GAAP in the United States and offer significant authoritative support; Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), the Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board (GASB) (pg.6, Kieso, Weygandt, & Warfield, 2007). . Securities and Exchange Commission (SEC) develops and standardizes financial information submitted to shareholders. The SEC encouraged the development of standards in the private sector thus accounting standards have been developed in the private sector by either the American Institute of Certified Public Accountants (AICPA), or the Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board (GASB) (pg.6, Kieso, Weygandt, & Warfield, 2007). The American Institute of Certified Public Accountants (AICPA) is the national professional organization for practicing Accounting. With influence from the SEC the AICPA appointed the Committee on Accounting Procedure (CAP) in 1939 which issued 51 accounting research bulletins dealing with accounting problems during a twenty year spam. The CAP failed to provide the needed structure of accounting principles, for...
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