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) provide guidance about acceptable accounting practices. Some of the reasons we use GAAP are that any business that expects anyone from outside their company to look at their financial data needs to use GAAP. Compliance with GAAP helps maintain creditability with creditors and stockholders because it reassures outsiders that a company's financial reports accurately portray their financial position. Additionally anyone who reads your financial statements will automatically assume they......
View the rest of this paper...
Approximate Word Count: 1254
Approximate Pages: 6 (250 words per double-spaced page)
Why should you join Frat Files?
- - It's safe, secure, and private.
- - Instant access to over 100,000 papers. New papers are added hourly.
- - Fast and reliable customer support.
Similar Essays
-
Generally Accepted Accounting Principles
Generally Accepted Accounting Principles. Part I. A. Generally Accepted
Accounting Principles. GAAP is not a fixed set of rules. ... -
General Accepted Accounting Principles
... Accounting Principles 2 It is the job of the FASB to establish the "generally accepted
accounting principles," or GAAP, to which public financial reporting by ... -
Accounting Principles And Ethics
... financial management, organization, and consistency, many health care organizations
use the Generally Accepted Accounting Principles, corporate compliance, and ... -
Regulatory Bodies
... Accounting Standards Board (FASB) is a private, non-profit organization which is
responsible for developing the generally accepted accounting principles (GAAP ... -
Generally Accepted Auditing Standards Paper
... The information is then evaluated to ensure that it follows Generally Accepted
Accounting Principles (GAAP) or any other standards that may apply. ...
Frat Files
Members
Information
