"Commercial Accounting And Generally Accepted Accounting Principles Generally Prescribe The Accrual Basis Of Accounting Over The Cash Basis Describe Both Bases Of Accounting And Explain The Differe" Essays and Research Papers

  • Commercial Accounting And Generally Accepted Accounting Principles Generally Prescribe The Accrual Basis Of Accounting Over The Cash Basis Describe Both Bases Of Accounting And Explain The Differe

     Generally Accepted Accounting Principles September 2, 2013 NUR/571 Generally accepted accounting principles (GAAP) is the term “used to describe the body of and requirements that shape the preparation of the four primary financial statements (Cleverley & Cameron, 2007).” These statements include the balance sheet, the statement of revenues and expenses, statement of cash flow, and statement in changes of net assets (Cleverley & Cameron, 2007). These statements track financial information...

    Accounts receivable, Asset, Balance sheet 753  Words | 3  Pages

  • Generally Accepted Accounting Principles

    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)...

    Accounts receivable, Asset, Balance sheet 1268  Words | 4  Pages

  • Define: Generally Accepted Accounting Principles and Accrual Basis

    related in any way? If so, how? 2 Assets 2 Liabilities 2 Owners' Equity 2 What is the purpose of an account? What is the purpose of a ledger? Explain the following terms as they relate to a T account: 2 (a) Debit side 2 (b) Credit side 2 How is profit determined under (a) the cash basis of accounting and (b) the accrual basis of accounting? 3 Why are adjusting entries necessary? Surely they cause too much delay in preparing financial statements, and the financial effect of any entries...

    Asset, Balance sheet, Bookkeeping 1401  Words | 5  Pages

  • Cash basis accounting vs accrual basis accounting

    There are two methods of accounting a business may use to record their transactions; cash basis accounting and accrual basis accounting. While both are effective, most businesses choose accrual basis accounting because cash basis accounting is not an acceptable form of accounting under Generally Accepted Accounting Principles (GAAP). However a small business may still elect to use this method. (Nobles, Mattison, Matsumura. 134) Cash basis accounting only records cash transactions, which gives little...

    Accrual, Asset, Balance sheet 866  Words | 2  Pages

  • Generally Accepted Accounting Principles

    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...

    Accountant, Balance sheet, Deferral 1303  Words | 4  Pages

  • Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles (GAAP) is the methods, rules, practices and other procedures that have evolved to govern the preparation of financial statements” Justify the statement with suitable examples. Accounting is the language of business and it is used to communicate financial information.  In order for that information to make sense, accounting is based on some fundamental concepts.  Transactions are recorded in accounts, following certain fundamentals concepts and conventions...

    Accrual, Asset, Balance sheet 1145  Words | 3  Pages

  • Generally Accepted Accounting Principles and Accrual Basis

    Ch.2- Accrual Accounting and Income Determination Under accrual basis -Revenues are earned when the seller completes performance required by an agreement. QA- Flying Carpet Tourism company purchased some cares for 24, making a down payment of 14 and signed a note payable for the remaining. How do you record this on cash basis once and on accrual basis another. Answer: Accrual basis: Expenses 24 Cash basis: Expenses 14 QB- Company A made sales revenue of 150 thousands...

    Accounting equation, Balance sheet, Double-entry bookkeeping system 538  Words | 3  Pages

  • Generally Accepted Accounting Principles

     Generally Accepted Accounting Principles HCS/571 February 5, 2014 Generally Accepted Accounting Principles In recent years healthcare systems have become more like business entities than health care providers. Technology is continually evolving so is healthcare and its financial approach. Generally Accepted Accounting Principles (GAAP), is a guide used by healthcare providers to account for their financial activities. GAAP is a guideline or a group of objectives and concepts that...

    Accounting equation, Asset, Balance sheet 938  Words | 6  Pages

  • Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles (United States) In the U.S., generally accepted accounting principles, commonly abbreviated as US GAAP or simply GAAP, are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations, and governments. Generally GAAP includes local applicable Accounting Framework, related accounting law, rules and Accounting Standard. Similar to...

    Financial Accounting Standards Board, Financial statements, Generally Accepted Accounting Principles 1498  Words | 5  Pages

  • Accrual: Generally Accepted Accounting Principles and Revenue

    Accrual concept Accrual Concept is a fall-out of Accounting Period concept. This concept requires that expenses incurred for a particular accounting period should be reckoned in the same period, irrespective of the fact whether these expenses have been paid in cash or not in that year. The same holds true for revenues, i.e., revenues earned in a specific accounting period are construed as incomes of the same period, irrespective of their receipts. This concept is also known as the accrual theory...

    Asset, Balance sheet, Expense 2265  Words | 7  Pages

  • Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles HCS/571 July 11, 2011 Generally Accepted Accounting Principles Generally Accepted Accounting Principles, or GAAP, is an accounting language of business used in health care facilities that have specific policies they must abide by when making choices for the direction of the institution. The Financial Accounting Standards Board, also known as FASB, developed these rules to guide them in recording and reporting financial information. Organizations use...

    Accountancy, Asset, Balance sheet 917  Words | 3  Pages

  • A Comparison Between Cash Accounting and Accrual Accounting

    A COMPARISON BETWEEN CASH ACCOUNTING AND ACCRUAL ACCOUNTING 1. Introduction Accounting principle and theory are generally referred to two main accounting methods which include cash accounting and accrual accounting. Cash basis accounting on income and cost is determined by the amount of actual payment for reference and accounting recording mode is simple, easy to master. The use of the accrual basis of accounting is more complicated than it with a main difference of recording timing. This essay...

    Accounting software, Accounts receivable, Accrual 1097  Words | 4  Pages

  • Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles Kelly Voelm NURS/571 March 25, 2013 Dr. Tricia Jenkins Generally Accepted Accounting Principles Companies and businesses are guided by rules and regulations that they must follow concerning financial data reporting. Generally accepted accounting principles (GAAP) assist accountants to work with the Securities and Exchange Commission (SEC) and are guidelines that apply to most financial statements. The GAAP are a list of principles...

    Asset, Balance sheet, Financial statements 904  Words | 3  Pages

  • Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles Stephanie R. Stewart HCS/571 September 24, 2012 Anne Harney Finlon Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) are important ideas to understand when discussing finances of any kind. It is important for all nurses, especially those in management roles, to understand financial concepts and be involved in the budgetary process. This paper will help to create an understanding of GAAP, the purpose of the principles...

    Balance sheet, Depreciation, Finance 1226  Words | 4  Pages

  • Generally Accepted Accounting Principles

     Generally Accepted Accounting Principles in Healthcare Nia Coerbell HCS 571 November 10, 2014 Professor Vaughn The Financial Accounting Standards Board (FASB) works with private sectors in order to develop standards or generally accepted accounting principles that guide companies in generating financial reports. Financial statements "convey information about the organization's financial results of its activities" (Finkler et al., 95). This way, lenders (e.g. banks) can determine...

    Accounts receivable, Asset, Balance sheet 947  Words | 6  Pages

  • Generally Accepted Accounting Principles (G.A.A.P)

    GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (G.A.A.P) GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable. The Business Entity Concept The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means...

    Balance sheet, Business, Corporation 1027  Words | 4  Pages

  • Accounting

    What is a theory? In this book we consider various theories of financial accounting. Perhaps, there¬fore, we should start by considering what we mean by a 'theory'. There are various perspectives of what constitutes a theory. The Oxford English Dictionary provides various definitions, including: A scheme or system of ideas or statements held as an explanation or account (description) of a group of facts or phenomena. Explanation or Account (description) of a group...

    Accountancy, Accountant, Accounting organizations 2333  Words | 7  Pages

  • Nur 571 Generally Accepted Accounting Principles

    Generally Accepted Accounting Principles Amy Santus RN BSN HCS/571 October 3, 2011 Debra Vaughn Increasing pressures of cutting costs and improving the quality of care in health care services influences the management of the health care organization to implement the generally accepted accounting principles (GAAP) within their daily routines. Generally accepted accounting principles (GAAP) are a set of uniform accounting guidelines health care organizations follow...

    Balance sheet, Depreciation, Finance 1005  Words | 4  Pages

  • accounting

    Accounting, or accountancy, is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting, management...

    Accountancy, Accountant, Big Four auditors 1677  Words | 6  Pages

  • The Accrual Basis Of Accounting Is Far Superior To The Cash Basis Of Accounting

    The Accrual basis of accounting is far superior to the Cash basis of accounting. Discuss. The difference between accrual and cash basis of accounting is cash basis accounting recognizes revenues and expenses depends upon on timing. Cash basis accounting is simple, recognizes revenues when cash is received and recognizes expenses when cash is paid out only. It does not record accounts payable or receivable. For example, paid a service invoice on Feb, the expenses will be recognized as expenses on...

    Accounting software, Accounts payable, Accounts receivable 1115  Words | 3  Pages

  • Generally Accepted Accounting Principles

    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...

    Balance sheet, Financial statements, Generally Accepted Accounting Principles 844  Words | 3  Pages

  • accounting

    income statement, (3) the statement of cash flows, and (4) the statement of owners’ or stockholders ‘equity. Financial reporting other than financial statements may take various forms. Examples include the president’s letter or supplementary schedules in the corporate annual report, prospectuses, reports filed with government agencies, news releases, management’s forecasts, and descriptions of an enterprise’s social or environmental impact. 2. Explain how accounting assists in the efficient use of scarce...

    Accountant, Accounting organizations, Accounting Principles Board 624  Words | 3  Pages

  • Foundational Accounting Principles and Terminology

    Running Head: Foundational Accounting Principles and Terminology 1 TUI University Eric Bollar Module 1: Case Assignment ACC501 Accounting For Decision Making Dr. Wendy Achilles January 21, 2011 Foundational Accounting Principles and Terminology 2 We all know how important the accounting aspect of any business/organization is. It is basically the most important way to manage...

    Balance sheet, Bookkeeping, Cash flow 1050  Words | 4  Pages

  • Accural Basis and Cash Basis Accounting

    Accrual Basis and Cash Basis Accounting Vannario L. McCray Accounting 290 A simple form of accounting is accrual basis accounting. When a payment is taken in after a sale of goods or services, a deposit may be made. When the time comes, checks are written because funds are available to pay bills, and the expense is recorded as of the check date regardless of when the expense took place. The main focus is on how much money is in the bank, the secondary focus is on making sure that all the...

    Accounting software, Accounts payable, Accounts receivable 1265  Words | 2  Pages

  • Basic Accounting Concepts and Business Structures

    Basic Accounting Concepts and Business Structures Rose Latifi ACC 537 November 10th 2012 Professor Joh David Basic Accounting Concepts and Business Structures Generally Accepted Accounting Principles (GAAP) and Related Hierarchy The common set of standards and procedures is called generally accepted accounting principles (GAAP). Four organizations are instrumental in the development of financial accounting standards (GAAP) in the United States: 1- Securities and Exchange Commission (SEC) ...

    Balance sheet, Corporation, Deferral 884  Words | 3  Pages

  • Generally Accepted Accounting Principles and Cash

    for the transactions a. Company A paid $2,500 cash to satisfy a previously recorded account payable. b. Mr A, one owner of the company withdrew $ 100 to pay to company X for his personal use. c. On December 3, the Matador Company paid $5,400 cash in salaries to office personnel. d. On February 5, Textron Stores purchased a van that cost $35,000, but not paid to the supplier. e. Company X bought $ 5000 inventories by cash. 3. Flora Accounting Services completed these transactions in February:...

    Accounts payable, Accounts receivable, Asset 440  Words | 3  Pages

  • Accounting

    Conceptual Framework of Accounting The Usefulness of a Conceptual Framework 1. To develop a coherent set of standards and rules 2. To solve new and emerging practical problems The FASB has issued seven Statements of Financial Accounting Concepts (SFAC) for business enterprises: SFAC No. 1 - Objectives of Financial Reporting SFAC No. 2 - Qualitative Characteristics of Accounting Information SFAC No. 3 - Elements of Financial Statements (superceded by SFAC No. 6) ...

    Balance sheet, Business, Depreciation 1394  Words | 5  Pages

  • Transition to the Accrual Accounting

    Transition to the Accrual Accounting The transforming from cash basis accounting to accrued accounting are associated with several general issue which including factor influencing the nature and speed of the transition, options in respect of the transition paths, and the management of the transition process. The factors that may influence the nature and speed of the transition to accrual accounting which the system of government and the political environment are the major basic requirement. Beside...

    Accrual, Asset, Balance sheet 1041  Words | 3  Pages

  • Maagement Accounting

    Department of Accounting and Finance BA (Hons) Accounting BSc (Hons) International Finance BSc (Hons) Accounting and Finance Financial Accounting 2 (AAF005-2) Referral Assessment 1 Academic Year 2012-13 Miryam Ghoitom Student ID: 112368 Contents Page * Introduction and Background * Cash basis accounting * Accrual basis accounting * Financial reporting * Conclusions, recommendations, or implications for the future. * References * Introduction * Cash Accounting vs Accrual...

    Accrual, Business, Cash flow 778  Words | 3  Pages

  • Accrual Accounting in Public Sector

    In the present age, accounting seems to be an indispensable tool for modern business activities. However, not only for the profit orientated commercial business, it also plays an important role in the non-profit profit organizations, such as public sectors. Moreover, due to several deficiencies and drawbacks of government accounting and financial-management systems, such as unclear accountability, poorly maintained assets and hided losses and long-term liabilities, reforms in the public sector have...

    Accountant, Accrual, Case study 2142  Words | 6  Pages

  • Generally Accepted Accounting Principles and Cash

    above 5. Which of the following is not an asset: q. cash r. equipment s. notes receivable t. all are assets 6. Both assets and owner’s equity would be increased by: u. Drawings v. Purchase of machinery on credit w. Payment of creditors x. Profit earned retained in business 7. The amount brought in by the proprietor in the business should be credited to: y. Cash account z. Salaries account {. Capital account ...

    1979, 1987, 2007 929  Words | 6  Pages

  • Accounting and Finance: Essay on Accrual Basis

    AC300:Financial Accounting I - Compulsory essay due 15th November Discuss the advantages and disadvantages of financial statements prepared on an accrual basis The financial statement is a financial document used to indicate the financial position of a business at a particular moment in time. A business’s financial position can be analysed into three main areas: Profitability, liquidity and stewardships. The statement is prepared at the end of each financial year using accounting basis. The Accrual accounting...

    Accrual, Balance sheet, Bank 1087  Words | 3  Pages

  • Generally Accepted Accounting Principles and Cash

    the most recent fiscal year, November 30, 2011, the accounting records reflected total assets of $500,000 and total liabilities of $200,000. During the current fiscal year ending November 30, 2012, the following summarized events occurred: a. Issued additional common shares for $200,000. b. Borrowed $120,000 cash from the bank and signed a 10-year promissory note. c. Built an addition on the factory for $200,000 and paid cash to the contractor. d. Purchased equipment for...

    Accounts receivable, Asset, Balance sheet 1327  Words | 7  Pages

  • Timberlands: Generally Accepted Accounting Principles and Fair Value

    issues raised by the transformation from U.S. Generally Accepted Accounting Principles (US GAAP) to International Financial Reporting Standards (IFRS) in the timber industry. I will cover the following topics: different accounting treatment under U.S. GAAP and IFRS, the influence on investment decisions, Plum Creek’s reason for the opposition against transformation, and conclude with my preferred accounting treatment under different roles. ACCOUNTING TREATMENT The concern is mainly on recognition...

    Balance sheet, Cash flow, Fair value 1419  Words | 4  Pages

  • Cash Based Accounting & Accrual Based Accounting

    types of accounting measurement to determine the profit. They are cash basis and accrual basis. Business can use either a cash basis or accrual basis to work there profit. However, most of the company prefers to use accrual basis instead of others. In this essay, I will compare the difference between cash basis and accrual basis on expense and revenue. In addition, how can company choose their measurement of profit will also be discussed. Cash basis & accrual basis Cash basis accounting is focus...

    Accrual, Bookkeeping, Cash flow 1099  Words | 4  Pages

  • Article Review-Accrual Accounting

    Accruals Accounting Developments on Public Sector Accounting in Malaysia According to a circular issued by the Accountant General’s Department (AGD), the new system is ‘expected to be flexible and in compliance with accounting standards based on cash or accrual basis, or a hybrid of both’ (AGD, 2003a: 1). The AGD had also put forward the accrual accounting migration conceptual plan in which it is planned that the government would adopt accrual accounting by 2008. The accrual accounting...

    Accrual, Deferral, Economics 705  Words | 2  Pages

  • Generally Accepted Accounting Principles and Case

    Student Cases with Solutions to accompany Accounting & Auditing Research: Tools & Strategies (7th edition) NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Other excellent sources of longer and more detailed cases include the Deloitte...

    Cash, Cash flow, Cash flow statement 995  Words | 4  Pages

  • Generally Accepted Accounting Principles Nur/513

    & Jones, 2007, p. 104). Generally Acccepted Acccounting Principles (GAAP) are rules, which have been established by Financial Accounting Standards Board (FASB). It is common set of accounting principles, procedures, and standards. Companies, including a health care companies, use GAAP to compile their financial statements. “GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information” (Investopedia...

    Annual report, Balance sheet, Depreciation 1120  Words | 4  Pages

  • Generally Accepted Accounting Principles and Cash

    Ex. 264 Prepare adjusting entries for the following transactions. Omit explanations. 1. Depreciation on equipment is $1,240 for the accounting period. 2. Interest owed on a loan but not paid or recorded is $175. 3. There was no beginning balance of supplies and $350 of office supplies were purchased during the period. At the end of the period $150 of supplies were on hand. 4. Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $700 had expired. 5. Accrued salaries...

    Accounting software, Accounts payable, Accounts receivable 459  Words | 4  Pages

  • accounting

    Introduction to Accounting Accounting is a profession used to make financial and business decisions. Billions of dollars exchange hands every day, in millions of separate business transactions. These are recorded and reported on using a comprehensive set of guidelines, referred to as Generally Accepted Accounting Principles (GAAP). Brief History of Accounting Accounting was born before writing or numbers existed, some 10,000 years ago, in the area known as Mesopotamia, later Persia, and today the...

    Accountancy, Accountant, Chartered Accountant 2329  Words | 10  Pages

  • Explaining Basic Accounting Concepts and Business Structures

    Basic Accounting Concepts and Business Structures I will explain the basic accounting concepts and business structures from the following topics: GAAP sources and hierarchy; Good accounting information using the qualities of accounting principles; Difference between Accrual based accounting and cash basis of accounting; Types of business structures and the features of each structure. 1. GAAP sources and hierarchy Generally accepted accounting principles (GAAP) is the set of accounting principles...

    Corporate tax, Deferral, Depreciation 797  Words | 3  Pages

  • Acc 403 Generally Accepted Accounting Principles (Us Gaap)

    University ACC 403 Mod 1 CA March 8, 2013 Part I.  Generally Accepted Accounting Principles (US GAAP) The common set of accounting principles, standards and procedures that companies use to compile their financial statements are called Generally Accepted Accounting Principles. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. “Published accounts have to follow the GAAP for...

    Balance sheet, Enron, Finance 1029  Words | 4  Pages

  • According to the Generally Accepted Accounting Principles

    According to the Generally Accepted Accounting Principles, T-Shirts by Tommy can account for the accident is to record an extraordinary item. Using the definition from our Intermediate Accounting textbook, extraordinary events are defined as, "…events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence" (Keiso). Because of the nature of the plane crash, and the fact that these types of accidents happen very rarely, it can definitely be categorized...

    Business, Depreciation, Expense 1595  Words | 4  Pages

  • Accounting

    Week 2 Discussed and Assessed Discussed Questions Martina Thomas University of Phoenix Accounting ACC/561 Tony Guice March 22, 2011 Week 2 Discussed and Assessed Discussed Questions Prepare to discuss any of the following questions from p. 715 of Introduction to Management Accounting: 15-3, 15-9, 15-4, & 15-15. 15-3. How are the income statement and balance sheet related? Income statement is one of financial statement that a company uses to outline the activities and occurrences...

    Asset, Balance sheet, Depreciation 760  Words | 3  Pages

  • General Accepted Accounting Principals

    Generally Accepted Accounting Principles Health care organizations financial statements are the key tools to show the economic stability of an organization and guide leadership in making informed decisions. The Generally Accepted Accounting Principles (GAAP) is basic assumptions, and principles of accounting to determine the financial position of an organization. These principles offer consistency across health care organizations, and businesses maintaining track of the organizations fiscal...

    Balance sheet, Financial statements, Generally Accepted Accounting Principles 732  Words | 3  Pages

  • Principle of Accounting

    asset differ from fixed asset? (10 marks) Current asset is define as cash and other assets that will be converted to cash or consumed during an operating period of one year or less whichever is longer. For current asset in hospitality firm, it is typically consist of cash, marketable securities, account receivable, inventory, and prepaid expenses. They are listed in liquidity order. Receivable, for example, will generate cash earlier then inventory, which have not yet to be used or sold, so are...

    Accounts receivable, Asset, Balance sheet 1052  Words | 3  Pages

  • accounting

    of the times, people find it difficult to understand the various accounting Concepts. In this coursework, I shall analyze these concepts and explain them. First of all I shall discuss the materiality concept. WHAT IS MATERIALITY? Authoritative accounting bodies in the USA such as Financial Accounting Standard Board (FASB), Securities and Exchange Commission (SEC), General Accounting Office (GAO), American Institute of Certified Public Accountants...

    Asset, Balance sheet, Decision making 2202  Words | 6  Pages

  • accounting

    to see what the mathematician and Father of Accounting (Luca Pacioli) saw in 1494 when he codified the double-entry bookkeeping system. It is his codified system that outlined the rules for applying debits and credits when recording the financial transactions of a business in the double-entry bookkeeping system. Now remember that Luca’s book in 1494 was written and published in Latin and at a time when the concept of negative numbers was not yet accepted in Europe. So he spoke of the terms  ‘Debere’...

    Accounting equation, Accounting systems, Balance sheet 1595  Words | 4  Pages

  • Basic Accounting Principles and Business Structure

    Basic Accounting Concepts and Business Structures Danny Silvio ACC/537 10/10/11 Professor Basic Accounting Concepts and Business Structures Generally Accepted Accounting Principles The sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements are prepared by the Financial Accounting Standards Board (FASB). The standard categorizes the major sources of GAAP as being FASB Standards, Interpretations...

    Accounting Principles Board, Corporation, Financial Accounting Standards Board 721  Words | 3  Pages

  • Explaining Basic Accounting Concepts and Business Structures

    Explaining Basic Accounting Concepts and Business Structures To understand accounting there are several key concepts and terms to be familiar with. One must know where Generally Accepted Accounting Principles came from as well as how businesses form. Sources of Generally Accepted Accounting Principles The Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and the Government Accounting Standards Board...

    Accounting Principles Board, Corporation, Decision making 756  Words | 3  Pages

  • Accounting

    Accounting Homework Individual Chapter 7 Question 1&2 1. (a) What are generally accepted accounting principles (GAAP)? In the U.S., generally accepted accounting principles, commonly abbreviated as US GAAP or simply GAAP, are accounting rules used to prepare, present, and report financial statements for a wide variety of entities, including publicly-traded and privately-held companies, non-profit organizations. (b)What bodies provide authoritative support for GAAP...

    Accounting equation, Asset, Balance sheet 557  Words | 3  Pages

  • Basic Accounting Principles & Concepts

    Basic Accounting Principles and Concepts http://misscpa.com/basic-accounting-principles-and-concepts/ Accounting is called the language of business that which communicates the financial condition and performance of a business to interested users, also referred to as stakeholders.   In order to become effective in carrying out the accounting procedure, as well as in communicating the financial information of the business, there is a widely accepted set of rules, concepts and principles that...

    Accountancy, Balance sheet, Bookkeeping 710  Words | 4  Pages

  • Accrual basis vs cash basis accounting

    Accrual Basis over Cash Basis Accounting There are two accounting methods that companies use to report revenues and expenses. The two methods are the accrual basis and cash basis. The difference in the accounting processes will fundamentally change the way the organization reports its cash, so a decision must be made prior to recording any transactions. Accrual Basis Accounting Accrual basis accounting is the method accepted by commercial accounting and the general accepted accounting principles...

    Deferral, Depreciation, Finance 423  Words | 2  Pages

  • Basic Accounting Concepts and Business Structures

    Basic Accounting Concepts and Business Structures Shannon Goshert ACC 537 July 25, 2010 Angela Rose Abstract Basic accounting concepts and business structures go hand-in-hand. Usually the business structure will determine the type of accounting concepts it will use. Generally accepted accounting principles (GAAP) are needed for effective accounting information. Basic Accounting Concepts and Business Structures Basic accounting concepts and business structures are important to a business’s...

    Accounting organizations, Accounting Principles Board, Business law 971  Words | 4  Pages

  • Generally Accepted Accounting Principles and Revenue Recognition

    computer hardware company, is publicly held with market capitalization amounting to over $450 million. Carlton’s system designs enable their mini-computer systems to measure up to the power of mainframes with small cost outlays. The accounting practices at Carlton normally permit revenue recognition after the shipment of the computer systems. Peale, Gower and Quill, Carlton’s auditors, are worried about the accounting practices regarding revenue recognition of certain transactions during the last...

    Computer, Customer, Financial Accounting Standards Board 1088  Words | 4  Pages

  • General Accepted Accounting Principles

    Accounting Principles i Running head: GENERAL ACCEPTED ACCOUNTING PRINCIPLES General Accepted Accounting Principles Accounting Principles ii Abstract My paper is about the GAAP (General Acceptance of Accounting Principles) which were created by the Accounting Principles Board (APB). The board was created by American Institute of Certified Public Accountants (AICPA) in 1959. APB issued 31 Opinions from 1959 to 1973 and those Opinions created GAAP. I think GAAP is interesting...

    Accountancy, Accountant, Accounting in the United States 958  Words | 4  Pages

  • Accounting Theory

    measure and chooses to measure…” (p. 480). Required: Discuss the extent to which the “scientific” world-view of mainstream accounting researchers, is grounded on a belief that “reality” exists independently of thee human subject and the possible implications this has for accounting theory development. Introduction Accounting is a subject that is guided with principles and regulations. Thus, it is often regarded as a rigid, rigorous, and highly analytical discipline with very precise interpretations...

    Epistemology, Humanities, Methodology 1573  Words | 8  Pages

  • Introduction, Review of Accounting Process and Financial Statements

    Introduction, Review of Accounting Process and Financial Statements Abstract This paper explains different types of accounting phrases and how they directly affect the accounting field. Phrases which are included and defined in the paper are Generally Accepted Accounting Principles, Contra-Asset Accounts, Historical Cost, Accrual Basis vs. Cash Basis Accounting, and Accounting Standards Codification. Definitions and examples of these terms are included as well as explanations of how they are...

    Accounts receivable, Asset, Balance sheet 2050  Words | 6  Pages

  • Cash Basis and Accrual Basis of Accounting

    1. Under cash basis of accounting, revenue and expense recognition would occur when cash is received and disbursed. Contrast cash basis of accounting with accrual basis. Give suitable examples. ACCRUAL BASIS OF ACCOUNTING - An accounting basis wherein revenue and expenses are recorded in the period in which they are earned or incurred regardless of whether cash is received or disbursed in that period. This is the accounting basis that generally is required to be used in order to conform to generally...

    Accrual, Depreciation, Double-entry bookkeeping system 348  Words | 2  Pages

  • Financial Accounting Theory, Chapter 4 Answers

    Assignment 4-2: Week 4 Analysis Write-Up Kylie Keener ACCT715-Q1WW Financial Accounting Theory Michael Miller 13 June 2012 1. Chapter 4: Problem 8 (GM) The article “GM to Take Charge of $20.8-Billion” here reproduced from The Globe and Mail (February 2, 1993) describes the potential impact of SFAS 106, “Accounting for Postretirement Benefits Other Than Pensions,” on General Motors and Ford. For example, it appears that General Motors will be required to record a liability of $20.8 billion...

    Financial Accounting Standards Board, Gaap, Generally Accepted Accounting Principles 1133  Words | 4  Pages

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