Generally accepted accounting principles 699
2 Pages

Generally accepted accounting principles 699

Course Number: ACCOUNTING 537, Spring 2011

College/University: University of Phoenix

Word Count: 698

Rating:

Document Preview

Generally accepted accounting principles (GAAP), created with authoritative support, are principles, rules and guidelines required to follow by accountants when preparing financial statements. The Hierarchy of GAAP is a structure consists of four different categories of well- developed accounting principles. The categories are from A to D with category A having principles with the most authoritative support and...

Unformatted Document Excerpt
Coursehero >> Arizona >> University of Phoenix >> ACCOUNTING 537

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

accepted Generally accounting principles (GAAP), created with authoritative support, are principles, rules and guidelines required to follow by accountants when preparing financial statements. The Hierarchy of GAAP is a structure consists of four different categories of well- developed accounting principles. The categories are from A to D with category A having principles with the most authoritative support and category D having the lease. Major sources of The Hierarchy of GAAP are FASB Standard, Interpretations, and Staff Positions; APB Opinions; and AICPA Accounting Research Bulletins. This hierarchy is important because it minimize the financial data from being bias and inconsistency by using multiple sources of the GAAP instead of just one. For example, if two or more sources in a given category do not agree with a specific transaction, then a higher category should be followed. Two primary qualities that make its accounting information effective are relevance and reliability. Relevant information has predictive value, which help users foretell the outcome of events in the past, present, and future. Another reason why relevant information is effective is because it is presented in a timely manner that is early enough for the user to consider when making a decision. It also helps users clarified and adjusted expectations in the past because relevance information has feedback value. Reliability is another quality that makes its accounting information effective. Reliable information is verifiable, it represents what really happened, and it's unbiased. Comparability and consistency are two secondary qualities that make accounting information useful. Comparability gives users the ability to compare information between companies in the same industry to make their business decisions. Consistency is another important quality for accounting information to be effective. Consistent Accounting information compared over different time periods within one company are useful for users when making business decisions. With that said, all these qualities that makes accounting information legit, could only be useful for decisionmaking if the users fully understand it. For example, even if the information presented is reliably, consistent, and relevant, but to a user who does not understand it, the becomes information useless. An accrual-basis accounting system records transactions when an event occurred. For example, companies using accrual basis accounting system would record their revenue once it was earned even if they did not actually get pay yet. This is known as the revenue recognition principle and it's under GAAP. These companies also treats their expenses in the same manner, they record their expenses when it occurs, rather than when the expenses is paid. This principle is called the matching principle, which is also under GAAP. Unlike the accrual basis accounting system, the cash-basis accounting system does the opposite. Companies using this system recognized their earning when they receive the cash. Likewise with their expenses, it is only recognized and recorded once the expenses are paid. Because the cash-basis accounting system violates the revenue recognition and matching principle, it's prohibited under GAAP. Companies using different accounting system would generate different financial statements since the revenues and expenses are recorded in two different time frames. There are three types of business structures; sole proprietorship, partnership, and corporation. Sole proprietorship is a business owed by one person and it's easy to set up. The owner has complete control of the business. They pay lower taxes compared to corporations, but they are responsible for all debts of their business. The second business structure is partnership; established by two or more people as partners. Partnerships get the same tax treatment as Sole proprietorship, and the same responsibilities as well regarding debts of their business. Partnerships are mostly established because one does not have the financial ability to start up a business on their own. The third business structure is corporation. A corporation is owed by stockholders and is a separate legal entity. Owners receive shares of stock to claim their ownership. It's easy to change ownership in a corporation by simple sell the stock. It takes only a small amount of money to buy stock and become a stockholder. Because it's such a small amount of money buy stock, it is easier for corporation to raise money. Unlike Sole proprietorship and partnerships, corporations pay higher taxes and have no personal liability.

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

University of Phoenix - ACC 280 - 280
Setup Information Brian Lindquist Peso? (1=Yes) 0 0.08 1.00 10.814 Mexican Pesos = 1.000 US Dollars Income Information Current Production Mid-Grade High-End Direct Materials ($)/Unit Mid-Grade High-End Direct Labor ($/HR)/Unit Labor Time (Hrs)/Unit Mid-Gr
University of Phoenix - ACC 280 - 280
Guillermo Furniture Store Analysis Arnold Rehaye Managerial Accounting and Legal Aspects of Business / ACC 543 Harry Sinclair 07/23/08Guillermo Furniture Store Analysis The Company of Guillermo Furniture is trying to be competent and gat the upper hand i
University of Phoenix - ACC 280 - 280
Picture 1
University of Phoenix - ACC 280 - 280
Picture 1
University of Phoenix - ACC 280 - 280
University of Phoenix - ACC 280 - 280
Introduction The objective of this paper is to go over the budget process. It will defined the purpose of flexible budgets and explains the relationship between fixed costs and variable costs. Moreover, the paper will go on and evaluate the difference bet
University of Phoenix - ACC 280 - 280
Picture 13
University of Phoenix - ACC 280 - 280
1 Running head: DEDT FINANCINGDebt Financing Jeena Cao ACC/543 March 6, 2011 Tom Benscoter2 Debt Financing The purpose of this memorandum is to analyze the implications of the financial decision of establishing a line of credit from a local bank to inve
University of Phoenix - ACC 280 - 280
University of Phoenix - ACC 280 - 280
DQ # 1 Real property can take many forms. The house you sleep in and the office you work in are two examples of real property. Discuss the legal interpretation of what defines "real property", and describe in detail some other considerations to take into
University of Phoenix - ACC 280 - 280
Location, Location, Location ACC 543Location, Location, Location White water rafting has exploded onto the adventure sports scene in the last 10 years. This explosion has broadened the business market for rafting companies in Oregon, Idaho and Colorado.
University of Phoenix - ACC 280 - 280
Running head: REGULATIONS1 EMPLOYMENTEmployment Regulations Jeena Cao ACC/543 March 19, 2011 Tom Benscoter2 Employment Regulations Beth is a salesperson who was hired by the security alarm sales company as an at-will independence contractor. On her way
University of Phoenix - ACC 280 - 280
Picture 1
University of Phoenix - ACC - 537
Generally accepted accounting principles (GAAP), created with authoritative support, are principles, rules and guidelines required to follow by accountants when preparing financial statements. The Hierarchy of GAAP is a structure consists of four differen
University of Phoenix - ACC - 537
Generally accepted accounting principles (GAAP), created with authoritative support, are principles, rules and guidelines required to follow by accountants when preparing financial statements. The Hierarchy of GAAP is a structure consists of four differen
University of Phoenix - ACC - 537
Long live asset are reported on the balance sheet in two parts. One is the plant assets and the other is the in intangible assets. Plant assets are physical assets, such as property, plant and equipment that the company owes. These assets provide services
University of Phoenix - ACC - 537
On the balance sheet, current liabilities are the first category on there. Current liabilities are obligations from current assets and is due within one year or the operating cycle (whichever is longer) Within the current liabilities section, there are li
University of Phoenix - ACC 363 - $21
An operating lease is a lease, which does not meet any of the criteria to be classified as a capital lease. Operating leases are expensed rather than capitalized. If the operating lease agreement requires lease payments to be made on a level-payment basis
University of Phoenix - ACC 363 - $21
DC# 4) Over the last ten years, accounting principles have become more strict because companies are able to find flaws in the accounting standards and use it to their advantage, therefore the FASB have to re-evaluate their rule and modify it to try to red
University of Phoenix - ACC 363 - $21
LEARNING TEAM CHARTER TEAM "C"Course Title ACC/541Team Members/Contact Information Name Brandy Cecil Phone 3525852300 Time zone and Availability During the Week Eastern Standard Time Available after 5 every day Hunt 3039327764 Mountain Time Zone Any ti
University of Phoenix - ACC 363 - $21
Response to Client Request one Jeena Cao ACC/541 Sonja Wilson November 5, 2010 Memo To: Supervisor of KTT Regional Trucking, Inc. From: Accounting team Re: Trailer Leasing The purpose of this memo is to notify you information about the Financial Accountin
University of Phoenix - ACC 363 - $21
The FASB is an organization that provides standardized guidelines for financial information. Their mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditor
University of Phoenix - ACC 363 - $21
Accounting Standards Boards Running Head: ACCOUNTING STANDARDS BOARDS1Accounting Standards Boards Jeena Cao University of Phoenix ACC/541 Accounting Theory & Research Dave Brunstein October 4, 2010Accounting Standards Boards Abstract2In the business
University of Phoenix - ACC 363 - $21
1Client Understanding Paper Running Head: CLIENT UNDERSTANDING PAPERClient Understanding Paper Jeena Cao University of Phoenix ACC/541 Accounting Theory & Research Sonja Wilson November 1, 20102Client Understanding Paper Client Understanding Paper At
University of Phoenix - ACC 363 - $21
Response to Client Request one Jeena Cao ACC/541 Dave Brunstein October 16, 2010 Memo To: Supervisor of KTT Regional Trucking, Inc. From: Accounting team Re: Trailer Leasing The purpose of this memo is to notify you information about the Financial Account
University of Phoenix - ACC 363 - $21
ACC/541 Financial AccountingACC 541 Week Four Student RoadmapThe CPA Examination Review Practice website helps you practice for the CPA exam. This website enhances your problem solving skills by testing your knowledge of concepts and skills related to A
University of Phoenix - ACC 363 - $21
Reporting paper Jeena Cao ACC/541 Sonja Wilson November 22, 2010 MEMO To: CEO From: Controller Re: Acquired Segments Most employees dedicate a small portion of their paycheck to some sort of pension plan offers through their company to save up an income f
University of Phoenix - ACC 363 - $21
ACC/541 Financial AccountingACC 541 Week Six Student Roadmap The CPA Examination Review Practice website helps you practice for the CPA exam. This website enhances your problem solving skills by testing your knowledge of concepts and skills related to AI
University of Phoenix - ACC 363 - $21
1Auditing a Publicly Traded CAuditing a Publicly Traded Company Team C Jenna Cao, Brandy Cecil, MaryAnn Hellein, and Hunt Holladay Financial Accounting Theory and Research ACC 541 Dr. Sonja Wilson November 26, 20102MemoSenior Auditor From:Jenna Cao,
University of Phoenix - ACC 363 - $21
1 Accounting Standards Boards Running Head: ACCOUNTING STANDARDS BOARDSAccounting Standards Boards Jeena Cao University of Phoenix ACC/541 Accounting Theory & Research Sonja Wilson October 24, 20102 Accounting Standards Boards Abstract In the business w
University of Phoenix - ACC 421 - $21
Automated Process of Accounting Information Systems Running Head: AUTOMATED PROCESS OF ACCOUNTING INFORMATION SYSTEMS1Automated Process of Accounting Information Systems: Kudler Fine Foods Team A: Jeena Cao, Heidi Janis Casazza, and Lioudmila Rogozina U
University of Phoenix - ACC 421 - $21
This week, we discussed what the term business without boundaries means and why does this matter to the AIS team. During this discussion, I've learned that this term refers to the development of business across the globe. This subject lead to Business Pro
University of Phoenix - ACC 421 - $21
CERTIFICATE OF ORIGINALITYI certify that the attached paper is my original work. I am familiar with, and acknowledge my responsibilities which are part of, the University of Phoenix Student Code of Academic Integrity. I affirm that any section of the pap
University of Phoenix - ACC 421 - $21
Picture 1
University of Phoenix - ACC 421 - $21
Invetory Report as of 12/31/2003GL Code Inventory Item 121000 Rustic Baguette 121001 Challah 121002 Calamata Olive Bread 121003 Ciabatta 121004 Ficelle 121005 Finnish Rye 121006 Prussian Rye 121007 Italian Semolina 121008 Sourdough Rounds and Batards 121
University of Phoenix - ACC 421 - $21
LEARNING TEAM A CHARTERCourse TitleACC 542- Accounting Instructor BRAD THOMPSON Course Dates 11/30/2010 through 01/24/2011Team Members/Personal Information Name/Time Zone Lioudmila Rogozina (MST) Jeena Cao Phone Numbers Home: 5059940500 Cell: 85861038
University of Phoenix - ACC 421 - $21
Week Three is all about data, databases and data structure. Data and information are the lifeblood of AIS and for business. To begin this week's discussion.why is the storage of accounting data important to AIS? One of the reasons is because most companie
University of Phoenix - ACC 421 - $21
Week five was a little tough for me because most of the topics discussed are all new to me. But because of that, I've gained a lot of valuable information. During week five, we discussed about the differences between IT audit and financial statement audit
University of Phoenix - ACC 421 - $21
1Computer Information SystemRunning head: COMPUTER INFORMATION SYSTEM BRIEFComputer Information System Brief Jeena Cao ACC/542 December 5, 2010 Brad Thompson2 Abstract Kathy Kudler first opened Kudler Fine Foods in San Diego on June 1998. Kudler Fine
University of Phoenix - ACC 421 - $21
University of Phoenix - ACC 421 - $21
Rationale and Analysis Behind the Recommended Course of Action Kudler Fine Foods (KFF) is a typical mid-size food retailer. The best decision for the company is to purchase industry-specific software. This software not only fits Company's needs right "out
University of Phoenix - ACC 421 - $21
1 Running head: KUDLER'S DATA TABLE ANALYSISKudler's Data TableKudler's Data Table Analysis Jeena Cao ACC/542 December 18, 2010 Brad Thompson2 Abstract Kudler Fine Foods' business is a developing grocery store with multiple locations. To help the store
University of Phoenix - ACC 421 - $21
Kudler's Fine Foods _x000D_Pivot Table _x000D_ DepartmentCode Item Data Total 10 0 Rustic Baguette Sum of amount 283.20 00 sum of amount 283.20 1 Challah Sum of amount 254.02 01 sum of amount 254.02 2 Calamta Olive Bread Sum of amount 452.67 02 sum of amo
University of Phoenix - ACC 421 - $21
Picture 1
University of Phoenix - ACC 421 - $21
Using the COSO report's five basic components, I would recommend my company's management team to sets the tone by establishing controls and communicating appropriate rules and regulations to gain control of the work environment. For risk assessment, audit
University of Phoenix - ACC 421 - $21
1Internal Control and RiskRunning head: INTERNAL CONTROL AND RISK EVALUATIONInternal Control and Risk Evaluation Jeena Cao ACC/542 January 10, 2011 Brad Thompson2 Abstract This brief contains information on controls that Kudler Fine foods has request
University of Phoenix - ACC 421 - $21
This week, we discussed internal control and risks. We talked about physical access, which is actually being there to touch the computer and any of it's components, and logical access, which does not required the user to be in the same site as the compute
University of Phoenix - ACC 421 - $21
University of Phoenix MaterialPivot Table ExampleThere are varying formats for pivot tables; however, this example has been provided in order to allow students to begin considering the various formats of pivot tables and advantages that may stem from ea
University of Phoenix - ACC 421 - $21
What are the advantages a firm gains by using auditing and assurance services? How might you use these advantages to promote the auditing and assurance division within a company?An audit can give business owners valuable information and make sure their f
University of Phoenix - ACC 421 - $21
To Whom It May Concern: On behalf of my firm, I would like to thank you for consider our audit and assurance firm for your auditing needs. We are proud to inform you that our firm offers high quality services using the most updated auditing tools. Our pri
University of Phoenix - ACC 539 - $21
Jamona Corporation ACC/545 Version 41University of Phoenix MaterialJamona CorporationOn January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They a
University of Phoenix - ACC 539 - $21
Los Lobos Ledger ACC/545 Version 41University of Phoenix MaterialLos Lobos Ledger Data12-31 2007 Cash Accounts receivable Allowance for doubtful accounts Inventory Property, plant, & equipment Accumulated depreciation Trade accounts payable Income tax
University of Phoenix - ACC 539 - $21
ACC/545 Student Road MapWeek Three-CPA Exam Review Road Map CPA EXAM REVIEW ROAD MAP The CPA Examination Review Practice website helps you practice for the CPA exam. This website enhances your problem solving skills by testing your knowledge of concepts
University of Phoenix - ACC 539 - $21
Picture 49
University of Phoenix - ACC 539 - $21
Picture 1
University of Phoenix - ACC 539 - $21
Los Lobos Classified Balance Sheets31-Dec-07 Assets Current assets Cash Accounts receivable (net) Inventory Total current assets Non-current assest Property, plant, and equipment Accumulated depreciation Total non-current asstes Total assets Liabilities
University of Phoenix - ACC 539 - $21
1) Journal entry for Investments1/ 1/06 Investment in Bonds- Available for Sale Cash Purchased Bonds for cash Available for Sale Cash Interest Revenue Received interest on investment in bonds Interest Revenue Investment in Bonds- Available for Sale Amort
University of Phoenix - ACC 539 - $21
1) Journal entry for Jamona Corp. investments in bonds using effective interest method: January 1, 2006 Available-for-sale Securities Cash Date Jan. 1, 2006 Dec. 31, 2006 Dec. 31, 2007 Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2010 Total $322,744.44 $322,744.4
University of Phoenix - ACC 539 - $21
LEARNING TEAM CHARTERCourse Title Instructor ACC 545: Financial Reporting Steven SandersCourse Dates May 3 June 13, 2011All team members participated in the creation of this charter and agree with its contents (Please check) Team Members/Personal Inf
University of Phoenix - ACC 539 - $21
Restructuring Debt Part A) ABCompany, Inc. is financially in distress and is now reorganizing. The management team has requested a report of the company's restructuring the debt by using company's available assets. On a good note, the bank has approved to
University of Phoenix - ACC 539 - $21
Restructuring DebtRestructuring Debt ACC545/Financial Reporting November 22, 2010 Maryln Fisher Restructuring Debt ABC Company is in financial trouble and management has decided that reorganization is in order. The company's debts need to be decreased us