Generally Accepted Accounting Principles Essays

  • Explain Generally Accepted Accounting Principles (GAAP)?

    1343 Words  | 6 Pages

    1. Explain Generally accepted accounting principles (GAAP)? Generally accepted accounting principles (GAAP) are the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or standard accounting practice. The following is a list of the ten main accounting principles and guidelines together with a highly condensed explanation of each. a. Economic Entity Assumption The economic entity principle states that the recorded activities

  • GAAP Principles: Generally Accepted Accounting Practice

    1811 Words  | 8 Pages

    Elaborate GAAP Principles with suitable examples.  GAAP GAAP stands for Generally Accepted Accounting Practice. It is a common set of accounting principles, standards and procedures that companies must follow when they compile their financial statements. GAAP is a combination of authoritative standards issued by Financial Accounting Standards Board and the commonly accepted way of recording and reporting accounting information. GAAP improves the clarity of the communication of financial information

  • Principles Of GAAP

    763 Words  | 4 Pages

    GAAP is brief of generally accepted accounting principles. GAAP is the set of concepts, guidelines, and rules that are produced for reporting balance sheet entries and recording business transactions. The features of GAAP comprise standards for how to classify items on a balance sheet, how to calculate outstanding share measurements, and how to calculate revenue. GAAP is created by an independent, private seven-member board called the Financial Accounting Standards Board. GAAP`s standards provide

  • Management Accounting Literature Review

    1128 Words  | 5 Pages

    Abstract: “The last few decades there has seen a large amount of interest in the changing of management accounting, issues and role of management accountants, showing that management accounting might have lost some relevance to the function of management and other financial and managerial information users and there has been a number of researches that suggests changes to the management accounting functions, systems, techniques and practices. This paper shows how the current management accountants

  • Intangible Assets Comparative Study

    1063 Words  | 5 Pages

    Comparative study on National and International Accounting Standards ( with Reference to Intangible Assets)” Ms. Ankita Jain Associate Professor LJ Institute of Management Studies Ahmedabad-382210 Gujarat, India ABSTRACT The aim of this study is to prepare the comparative analysis of accounting standards on Intangible assets namely AS-26 (India)

  • Accounting Principles In Accounting

    877 Words  | 4 Pages

    relation to the problem of Patterson, GAAP are the accounting principles generally accepted and used by companies based in the US or listed on the stock exchanges in that country. They are a combination of standard approved by regulatory organizations and accepted ways of keeping records. GAAP include a massive volume of standards, interpretations, opinions and bulletins and are developed by Financial Accounting Standard Board (FASB), the Accounting Profession (AICPA) and the securities and exchange

  • Examples Of Accrual Accounting

    1078 Words  | 5 Pages

    A system of accounting supported based on the accrual primary, beneath the revenue is documented (recorded) when earned, and expenses are recognized once incurred. Totals of revenues and expenditures are revealed in the financial statements (prepared at the end of an accounting period), whether or not money was received or salaried out in that period. Accruals basis accounting obeys to the supplies of GAAP in getting ready the financial statements for exterior users, and is hired by most firms excepting

  • Effects Of Globalization On Accounting

    2070 Words  | 9 Pages

    ON ACCOUNTING Abstract: In the circumstance of globalization, the situation of accounting becomes complex and incites discussion and debate in aspects of trend, scale, and impact in accounting world. With the changes the globalization brings about, it is vital to comprehend what the changes are and how they influence the accounting. This paper aims to analyze the effects of globalization on accounting basically from three perspectives------ the effects on the Generally Accepted Accounting Principles

  • Advantages Of Learning Accounting Theory

    1496 Words  | 6 Pages

    Accounting is a practice that operates throughout a wide range of socio – economic environment which is why the knowledge that is needed or should be possessed by an accountant cannot be accurately categorized. This is the reason why it is impossible to discuss an area of a particular concept without having complete knowledge of the other key areas of accounting as well. Therefore for an accountant, it is a must to not only know what accounting is but should also be able to comprehend it.Taylor and

  • The Pros And Cons Of Principles-Based Accounting

    1046 Words  | 5 Pages

    throughout the last fifty years on whether accounting standards should be rules –based or principle based (Zeff, 2003). The question is whether historical cost accounting or fair value must be used is questioned and for the instant, as Zeff (2007) opinion, fair value is becoming more prominent in the standards of the International Accounting Standards Board (IASB) as

  • Double Entry System In Accounting

    1377 Words  | 6 Pages

    Accounting For the accounting, the primary function of the accountant is to develop and provide data to measure the performance of the firm (Dr. Castro), assess its financial position, and taxation. The accountants are responsible for preparing financial statement, like income statements, cash flows and balance sheets. Accountants are normally passive work, for the work has a very independent nature to it, such as prepare the forms and financial statements. This type of job is a good job to people

  • Creative Accounting Analysis

    892 Words  | 4 Pages

    the meaning of “creative accounting” and “earnings management” Creative Accounting Creative accounting is an accounting practices that may follow the standards of accounting but is certainly deviated from those rules of standards. They were done by excessive use of complicated method and use of many novel ways of characterizing income, assets and liabilities with the intention to influence the reader towards how the doer would like them to understand. Creative accounting is also called cooking the

  • Importance Of Financial And Managerial Accounting

    848 Words  | 4 Pages

    Financial and Managerial Accounting Derek Baker ACCT105 Financial accounting is the field of accounting that is concerned with summarizing, analysing, and reporting of any business’ financial transactions (Chiang et al.. 2015). This includes financial statements preparation for the purposes of public consumption. Some of the people that are interested in receiving financial statements of a particular business include: suppliers, stakeholders, banks, government agencies, employees, and business

  • The Importance Of Accounting Standards

    1544 Words  | 7 Pages

    Introduction Globalization of a reporting standard or capital market for a country or company is an irreversible process, and there are many potential benefits that will be derived from an accounting standards that are recognized and respected mutually. One of the main benefits that could be gained by adopting a uniform standard that it could help the company to cut the additional cost to be incurred in preparing the supplementary information required while doing business across borders. They make

  • Financial Accounting Theory

    1473 Words  | 6 Pages

    At present, financial accounting standards are established and propagated on the basis of two key conceptual structures, namely, Financial Accounting Standards Board (FASB) and International Accounting Standards Boards (IASB) (Cong 2013). This essay will discuss and justify that accounting theory played a role in setting of accounting practices but it played no significant role in setting of accounting standards. Rather, several accounting standards were set by the conceptual frameworks formulated

  • The Importance Of Financial Accounting

    1309 Words  | 6 Pages

    development in certain areas of financial accounting, if not all. The idea of financial accounting as a whole has the responsibility to identify the parties in business transactions and provide them with the information they need to do business in a fair and objective manner. In the same vain, the content of such information should be useful to present and potential investors and creditors, not excluding other external users in making rational decisions. The accounting practice requires that financial statements

  • Importance Of Financial Reporting

    1006 Words  | 5 Pages

    organisations associated with them. Like any other profession, accounting is no exception and adorns certain standard operating procedures which outline the approach towards reporting accounting information. There are two prominent set of standards incorporated across the accounting world: Generally Accepted Accounting Principles(GAAP) and International Financial Reporting Standards(IFRS). Th GAAP have been formulated by the Financial Accounting Standards Board(FASB) under the oversight of the Securities

  • Enron Financial Analysis

    843 Words  | 4 Pages

    the employment of the Generally Accepted Accounting Principles (GAAP). However in certain instances, entities don’t conform to the GAAP and fraudulently manipulate their financial reports

  • Stanley Black & Decker Inc Case Study

    1401 Words  | 6 Pages

    internal control over financial statement. Internal control over financial statement reporting is process provided to ensure the reliability of financial reporting and preparing financial statement for reporting external purpose m according to general accepted in united state of America. ……………………………………………………. Question: 1 Yes there is an exception, as there is some exception in the report, this means that its unqualified report. There are other types of reports: -Qualified opinion, when one or more

  • Accounting: The Advantages Of Historical Cost Accounting

    945 Words  | 4 Pages

    Historical cost accounting refers to the measure of value used in accounting in which the price of an asset at the balance sheet is based on its nominal or original value when acquired by the company. The historical-cost method is used for assets in the U.S. under generally accepted accounting principals (GAAP). Based on the historical-cost principle, under U.S. GAAP, most assets held on the balance sheet are to be recorded at the historical cost even if they have significantly changed in value over