Generally accepted accpunting principle or gaap, Financial Management

Assignment Help:

Generally Accepted Accpunting Principle or GAAP

The American Institute of Certified Public Accountant (AICPA) elaborates financial accounting theory and commonly accepted accounting principles as follows:

Financial statements are the products of procedure in that a large volume of data about aspects of the economic activities of an enterprise are accumulated, analysed and reported.  The procedure should be carried out in accordance along with commonly accepted accounting principles.  Generally accepted principles incorporate the consensus at a particular time as to that economic resources and obligations should be recorded as assets and liabilities through financial accounting, that change in assets and liabilities should be recorded, while these changes should be recorded and how the changes in assets and liabilities should be measured. GAAP also lays emphasis on what information should be disclosed and how it should be disclosed and which financial statements should be prepared.

Generally Accepted Accounting Principles (GAAP) encompasses the convention, rules and procedures essential to define accepted accounting practice at a particular time.  GAAP involved not only wide guidelines of common application, but also detailed practices & procedures.


Related Discussions:- Generally accepted accpunting principle or gaap

Explain benefits of currency option contract as hedging tool, What are the ...

What are the advantages or benefits of a currency options contract as a hedging tool compared with the forward contract? Answer:  The major advantage of by using options contra

Micro/Macro Question, You have been hired as an economic advisor to the Sou...

You have been hired as an economic advisor to the Southeastern Conference. As your first assignment they have asked you to identify three microeconomic and three macroeconomic issu

Case study, Suggestion regarding Credit limit. Should it be approved or not...

Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.

Bonds/debentures, Bond are formal certificates issued by the companie...

Bond are formal certificates issued by the companies or government agencies acknowledging the indebtedness. To the investors, they are proofs of investment. In th

Advanced Accounting, Balance Sheets Peony Ltd. Aster Ltd. ...

Balance Sheets Peony Ltd. Aster Ltd. Assets: Cash $ 62,500 $ 25,000 Accounts receivable 187,500 200,000 Inventori

Explain terminal value calculation at end of forecast period, Explain the t...

Explain the terminal value calculation at the end of the forecast period.  Why is it necessary? The organization whose business operation is being valued is not supposed to sudde

Explain the post-acquisition integration plan, Explain the Post-acquisition...

Explain the Post-acquisition integration plan Post-acquisition integration plan Keep  all  channels  of communications open,  by  includin

Differance between forward start option and a package, 1 Explain the differ...

1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com

Strategic investment and decision-making, Carr, C., Kolehmainen, K. and Mit...

Carr, C., Kolehmainen, K. and Mitchell, F. (2010) ‘Strategic investment decision-making practices: a contextual approach', Management Accounting Research, 21, 167-84. (a) What a

Explain the bird in the hand theory of cash dividends, Explain the bird in ...

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory state that dividends received now are better than a promise of future dividends.  U

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd