Question

What are the major accounting guidelines impacting Nike Inc. and the industry at large?

Answer 1

There are general rules and concepts that govern the field of accounting. These general rules–referred to as basic accounting principles and guidelines.

Basic accounting and principals and guidelines given as below:-

1. Economic Entity Assumption:- All business transactions of a sole proprietorship separate from the business owner's personal transactions. Sole proprietor and its owner are considered to be one entity but in accounting there is a separate personality.
2. Monetary Unit Assumption:- Because of basic accounting principles, Economic activity is measured in U.S. dollars, and only transactions that can be expressed in U.S. dollars are recorded.
3. Time Period Assumption:- This principal assumes that it is possible to report the complex and ongoing activities of a business in relatively short, distinct time intervals.
4. Cost Principle:- Because of this accounting principle asset amounts are not adjusted upward for inflation. In fact, as a general rule, asset amounts are not adjusted to reflect any type of increase in value.
5. Matching Principle:- This accounting principal requires companies to use the accrual basis of accounting

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