Why is it important to have an established system of accounting and Generally Accepted Accounting Principles...
Why is it important to have an established system of accounting and Generally Accepted Accounting Principles or rules that everyone must follow? (Answer this question in 1-2 brief, well-developed paragraph(s))
Homework Answers
The Principles of GAAP Generally accepted accounting principles, or GAAP for short, are the accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cashflow statements, for publicly traded companies and many private companies in the United States. 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. GAAP is implemented through measurement principles and disclosure principles. Measurement principles recognize and determine the timing and basis of items that enter the accounting cycle and impact the financial statements, such as the period in which transactions will be recorded.Disclosure principles determine what specific numbers and other information are essential to be presented in financial statements. Basically, GAAP is concerned with:
- the measurement of economic activity;
- the time when such measurements are to be made and recorded;
- the disclosures surrounding this activity; and
- the preparation and presentation of summarized economic information in financial statements.
Why GAAP?
Without GAAP, companies would be free to decide for themselves what financial information to report and how to report it, making things quite difficult for investors and creditors who have a stake in that company. Because financial statements prepared under GAAP are intended to reflect an economic reality, GAAP makes a company's financials comparable and understandable so that investors, creditors and others can make rational investment, credit and other financial decisions. In order to be useful and helpful to users, GAAP requires information on financial statements to be relevant, reliable, comparable and consistent.
Add Answer to:
Why is it important to have an established system of
accounting and Generally Accepted Accounting Principles...
CLOs: 2, 3] In your initial post, briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What...
CLOs: 2, 3] In your initial post, briefly discuss Generally Accepted Accounting Principles or G.A.A.P. What are they? What is their purpose? Name the U.S. and international standard-setting bodies that established these principles. Are all companies required to follow these principles? Why or why not? Your answer should illustrate understanding of generally accepted accounting principles and their international counterpart.
The generally accepted accounting principles (GAAP) require that the EPS be calculated using a Group of...
The generally accepted accounting principles (GAAP) require that the EPS be calculated using a Group of answer choices conservative treatment liberal treatment standard set of rules developed by the accounting profession standard set of rules developed by the SEC
Accountants follow generally accepted auditing accounting standards and generally accepted accounting principles (GAAP). Distinguish between the...
Accountants follow generally accepted auditing accounting standards and generally accepted accounting principles (GAAP). Distinguish between the GAAS and GAAP. What professional organization establishes the GAAS and what is its purpose? What professional organization establishes the GAAP? Can GAAS exist without GAAP and/or vice versa and why is this so? Do GAAS and GAAP have different agendas and why is each needed?
Violating GAAP Why is it permissible to violate generally accepted accounting principles when preparing reports used...
Violating GAAP Why is it permissible to violate generally accepted accounting principles when preparing reports used by company management? give your own answer in a paragraph
earch forums . Chapter 15 - Generally Accepted Accounting Principles DB #5 Why is it permissible...
earch forums . Chapter 15 - Generally Accepted Accounting Principles DB #5 Why is it permissible to violate generally accepted accounting principles when preparing reports used strictly by management? Your response should be a minimum of 100 words. In your answer, explain and provide support as to why or why not it is acceptable and give an example for either argument. If you use an outside source in support of your answer, follow APA formatting for the reference. For this...
2. Firms speak of the use of Generally Accepted Accounting Principles (GAAP). Why is this approach...
2. Firms speak of the use of Generally Accepted Accounting Principles (GAAP). Why is this approach important and who assures that it is followed? (There are several parties involved) 3. What is accrual accounting and how does it differ from cash based accounting?
Soved In the U.S., Generally Accepted Accounting Principles (GAAP) are established by the: Multiple Choice 0t0656...
Soved In the U.S., Generally Accepted Accounting Principles (GAAP) are established by the: Multiple Choice 0t0656 International Accounting Standards Board (ASB). C ) Public Company Accounting Oversight Board (PCAOB). 0 Financial Accounting Standards Board (FASB). 0 American Institute of Certified Public Accountants (AICPA). 0
Why is it permissible to violate generally accepted accounting principles when preparing reports used strictly by...
Why is it permissible to violate generally accepted accounting principles when preparing reports used strictly by company management?
14. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established...
14. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established it in an official pronouncement. b. It has been accepted as appropriate because of its universal application. @both a and b. d. neither a norb. 15. A common set of accounting standards and procedures are called a. financial accounting standards. 6. generally accepted accounting principles. c. objectives of financial reporting. d. statements of financial accounting concepts. 16. Which of the following is a general...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
earch forums . Chapter 15 - Generally Accepted Accounting Principles DB #5 Why is it permissible to violate generally accepted accounting principles when preparing reports used strictly by management? Your response should be a minimum of 100 words. In your answer, explain and provide support as to why or why not it is acceptable and give an example for either argument. If you use an outside source in support of your answer, follow APA formatting for the reference. For this...
Soved In the U.S., Generally Accepted Accounting Principles (GAAP) are established by the: Multiple Choice 0t0656 International Accounting Standards Board (ASB). C ) Public Company Accounting Oversight Board (PCAOB). 0 Financial Accounting Standards Board (FASB). 0 American Institute of Certified Public Accountants (AICPA). 0
14. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established it in an official pronouncement. b. It has been accepted as appropriate because of its universal application. @both a and b. d. neither a norb. 15. A common set of accounting standards and procedures are called a. financial accounting standards. 6. generally accepted accounting principles. c. objectives of financial reporting. d. statements of financial accounting concepts. 16. Which of the following is a general...
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...
Most questions answered within 3 hours.
-
The financial statements of Apple Inc. show the following
numbers for fiscal year 2017 ($000,000):
Revenue...
asked 4 seconds ago -
Suppose that you are given the following results. Find the
correlation coefficient of the data.
sx...
asked 9 minutes ago -
The width of a tool used for semiconductor manufacturing
is assumed to be normally distributed with...
asked 11 minutes ago -
A
runaway train car that has a mass of 1,400 kg travels at a speed of...
asked 15 minutes ago -
The expected abnormal earnings of a firm that has earnings of
$40,000 with a required equity...
asked 13 minutes ago -
A spherical surface completely surrounds a collection of
charges. Find the electric flux through the surface...
asked 29 minutes ago -
Two capacitors with capacitances of 12 and 18.1 µF,
respectively, are connected in parallel. The system...
asked 15 minutes ago -
Let's say you are a small business owner that provides
business-to-business software-as-a-service to non-profit
organizations. Your...
asked 20 minutes ago -
A circuit is constructed with five resistors and a battery as
shown. The battery voltage is...
asked 28 minutes ago -
A. What is the U.S.
economic system and what do you think are the advantages and...
asked 28 minutes ago -
A student measures the following data in a calorimetry
experiment designed to determine the specific heat...
asked 43 minutes ago -
1) 2H2O(g) → 2H2 (g) + O2 (g) DH = 483.6 kJ
If 5 moles of...
asked 48 minutes ago