Accounting Principles General accepted accounting principles (GAAP) are the accounting rules used to prepare and standardize the reporting of financial statements‚ such as balance sheets‚ income statements and cash flow statements. GAAP-based income is measured so that the information provided on financial statements is useful to those making economic decisions about a company‚ such as potential investors and creditors. Basically‚ GAAP is concerned with the measurement of economic activity‚ the time
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state the responsibility of services that will be provided to your organization‚ City of Lakes‚ a public non-profit: The services provided to your organization consist of a Summary of General Accepted Accounting Procedures (GAAP). This will outline the basic principles of GAAP that relates to public non-profits and how it may differ from for-profit businesses. Following‚ will be a basic overview of Accounting Practices that will help the reader gain insight of basic accounting principles. The goal
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reporting practices. Financial practices and ethical finance concerns are important to the success of any organization‚ particularly within the health care industry. The four elements of financial management‚ generally accepted accounting practices (GAAP)‚ and general financial ethics standards are part of ensuring fair and accurate financial reporting from health care organizations. Examining examples of ethical standards of conduct and reporting standards helps to understand the impact of financial
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auditor must exercise due professional care in the performance of the audit and the preparation of the report. | Jones‚ CPA did not exercise “professional care in performance of the audit and preparation of the report” because he failed to follow the GAAP guidelines. There were no notes included within the report‚ students conducted the report without guidance etc. | The auditor must adequately plan the work and must properly supervise any assistants. | Jones did properly supervise the
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ballooned the company’s revenues; in turn‚ causing them to record an incorrect profit of $1.0 million for the year ended December 31‚ 2008. Had this entry been booked correctly and within the guidelines of the generally accepted accounting principles (GAAP)‚ Overstock would have recorded its earnings correctly‚ showing a loss of $0.8 million. To make matters indefinitely worse; this was the second issue dealing with Overstock’s financials in less than six months. Chris Kanaracus of the journal‚ Computerworld
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Question I Give definition of earning management. Discuss in what instances is earnings managementacceptable and in what instances is it not acceptable. Before defining what earnings management is‚ it is important to understand the meaningof earnings first. Earnings are the profits of a company. Investors and analysts look to earningsto determine the attractiveness of a particular share. Companies with poor earnings prospectswill typically have lower share prices than those with good prospects
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There are four major functions to financial management: planning‚ controlling‚ organizing and directing‚ and decision-making (Baker & Baker‚ 2011). There is a common set of accounting principles‚ known as general accepted accounting principles (GAAP)‚ in which organizations use to compile their financial statements. These standards and procedures must be adhered to or organizations can risk governmental penalties for non-compliance. Non-compliance can also lead to fraudulent assumptions and bad
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Some of the decisions made will be in accordance to the organizations financial objectives but‚ normally it is in accordance to the generally accepted accounting principles. GAAP Generally accepted accounting principles or the GAAP are considered to be the main structure for the guidelines of financial accounting. The GAAP also can be considered to be the authority for all the accounting standards. These accounting standards include standards such as‚ the rules and regulations that the organizations
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to apply them to daily financial practices. Once there is understanding of these terms‚ then it would be easier to provide a more ethical approach when it comes to the organization’s financial stability. Generally accepted accounting principles (GAAP) basically are the guidelines that one should follow when trying to establish proper financial documents and reports. With these guidelines to follow‚ it was easier to maintain the financial reporting’s for all fields‚ including healthcare. The generally
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http://blog.accountingcoach.com/contingent-liability-contingency/ Contingent Liability Accounting Tools Retrieved May 7‚ 2011 from http://www.accountingtools.com/contingent-liability (November 18‚ 2002) Sarbanes-Oxley Update: SEC Proposes Rules on Non-GAAP Financial Information and MD&A Disclosure Dorsey: Dorsey & Whitney LLP Retrieved May 7‚ 2011 from http://www.dorsey.com/Resources/Detail.aspx?pub=20
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