Documents about Accepted Accounting Principles
ch 1
Texas San Antonio, ACCT 3023
Excerpt: ... 1 THE ENVIRONMENT OF FINANCIAL REPORTING CHAPTER OBJECTIVES After careful study of this chapter, students will be able to: 1. 2. 3. 4. 5. 6. Understand capital markets and decision making. Know what is included in financial reporting. Explain generally accepted accounting principles (GAAP) and the sources of GAAP. Identify the types of pronouncements issued by the FASB. Understand how the Financial Accounting Standards Board (FASB) operates. Describe the relationship between the Securities and Exchange Commission (SEC) and the FASB. Use ethical models for decision making about ethical dilemmas. Understand creative and critical thinking. 7. 8. 1-1 SYNOPSIS Accounting Information 1. Accounting, the "language of business," has been described as the process of identifying, measuring, recording, and communicating economic information to permit informed judgments and decisions by users of information. Accounting provides a link between the economic activities of a company and decision makers who a ...
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ACCT 284 - Ch1 Glossary
Iowa State, ACCT 284
Excerpt: ... Chapter 1 Glossary Accounting A system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. Accounting Entity The organization for which financial data are to be collected. Accounting Period The time period covered by the financial statements. Audit An examination of the financial reports to ensure that they represent what they claim and conform with generally accepted accounting principles . Balance Sheet (Statement of Financial Position) Reports the amount of assets, liabilities, and stockholders' equity of an accounting entity at a point in time. Basic Accounting Equation (Balance Sheet Equation) Assets = Liabilities + Stockholders' Equity. Financial Accounting Standards Board (FASB) The private sector body given the primary responsibility to work out the detailed rules that become generally accepted accounting principles . Generally Accepted Accounting Principles (GAAP) The measurement rules used to develo ...
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ACC2100-Solutions Chapter One
Coastline Community College, ACC 101
Excerpt: ... ) the income statement which shows the results of the company's income-producing activities for a period of time, and (3) the statement of cash flows which shows the cash inflows and cash outflows for a period of time. Many companies also present the statement of changes in stockholders' equity, which shows the changes in each item of stockholders' equity for a period of time, as a fourth major financial statement. Q1-3 Q1-4 Q1-5 Q1-6 Generally accepted accounting principles (GAAP) are the guidelines, procedures, and practices that a company is required to use in recording and reporting the accounting information in its audited financial statements. The four accounting bodies that have established generally accepted accounting principles are the Financial Accounting Standards Board (FASB), Accounting Principles Board (APB), American Institute of Certified Public Accountants (AICPA), and the Committee on Accounting Procedure (CAP). The Securities and Exchange Commission (SEC) also establishes GAAP. The C ...
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Study Guide Exam 3
UC Riverside, ECON 003
Excerpt: ... BUS 10, Study Guide Exam 3 Exam 3: Thursday, March 22nd from 11:30 am-2:30 pm; BRING SCANTRON AND PENCIL Study and review: Ch. 17, 18, 19, 20 from 8th edition of textbook and material covered during lectures Some Key Concepts: Ch. 17 Managerial accounting Financial accounting CPA (Certified public accountant) GAAP (Generally accepted accounting principles ) Sarbanes-Oxley Act Accounting cycle Annual report Financial statement Income Statement Revenue Cost of goods sold Gross profit (gross margin) Operating expenses Net income/net loss Cash flow Statement of cash flows Balance Sheet Assets, Liabilities, Equity The fundamental accounting equation: Assets=Liabilities + Owner's Equity Accounts payable, receivables Retained earnings Ratio analysis Liquidity ratios - Current ratio=Current assets/Current liabilities Leverage (Debt) ratios - Debt to equity ratio=Total liabilities/Owners' equity Ch. 18 Finance Financial management 3 of the most common ways for a firm to fail financially (p.485) - lack of access to capi ...
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QuestionsPartVIII-soln
Virgin Islands, LAW 345
Excerpt: ... Law 345 Taxation Questions for Part VIII Income from Business or Property: Deductions 1. How does the Income Tax Act deal with personal or living expenses and how does this compare with generally accepted accounting principles ? If an expense is incurred for the purpose of producing income from business or property it would normally be deductible under generally accepted accounting principles . It would also be deductible under the requirement in the Act [s. 18(1)(a)] that an expense incurred for the purpose of producing income from business or property. If an expense was for personal or living expenses it would normally not be deductible under generally accepted accounting principles or under the requirement in the Act [s. 18(1)(a)] that an expense incurred for the purpose of producing income from business or property because a personal or living expense would not be incurred for the purpose of producing income from business or property. A personal or living expense would also not be deductible under the pr ...
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c01 SM inter 10e
Texas State, ACC 3313
Excerpt: ... CHAPTER 1 THE ENVIRONMENT OF FINANCIAL REPORTING CONTENT ANALYSIS OF CASES Time Range (minutes) 5-10 Number C1-1 Content Pronouncements. Matching a list of descriptive statements with a list of pronouncements establishing or related to generally accepted accounting principles . Accounting Organizations. Matching of a list of descriptive statements with a list of abbreviations of accounting organizations. Identify complete name of each organization. History of Establishment of GAAP. Discuss CAP, APB, FASB, and related pronouncements. (AICPA adapted). Accounting Principles. Define accounting principles. Discuss sources of GAAP. (CMA adapted). Standard Setting. Describe why there is political action and social involvement in the standard setting process. Organization of the FASB. Summarize the structure of the FASB, its documents (GAAP pronouncements), and its operating procedures. GAAP and the AICPA. Summarize the GAAP-related documents published by the AICPA. Code of Professional Conduct. Identify, ...
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Chapter 1
Drexel, ACCT 115
Excerpt: ... Accounting Notes 3/31 Chapter 1 Accounting is the summarization of the business totals that occurs over a business day Three types of accounting: Financial, Managerial, and Tax Basic Functions of an Accounting System Interpret Classify transactions Will Learn More About Balance Sheet Income Statment Statement of Cash Flows Characteristics of Externally Reported Info (this class) general purpose assumption means to an end broader than financial statements results from inexact and appropriate measures historical in nature (not market value) Accounting Information Institutional Features such as Generally Accepted Accounting Principles Financial Accounting Standards Board International Accounting Standards Board Security and Exchange Commission Public Company Accounting Oversight Board Audits of Financial Statements Legislation Accounting Information Professional Organization i really dont feel like listing these cause they prob dont matter Careers in Accouting Public Accounting ...
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Chap001
MD University College, ACCT 610
Excerpt: ... ENVIRONMENT AND THEORETICAL STRUCTURE OF FINANCIAL ACCOUNTING CHAPTER 1 Overview The primary function of financial accounting is to provide relevant financial information to users external to the business enterprise. The focus ...
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chapter 1_Notes
Cornell, AEM 221
Excerpt: ... se) price P/E ratio x Net Income Generally Accepted Accounting Principles Generally accepted accounting principles (GAAP) measurement rules used to develop the information in financial statements Securities and exchange commission (SEC) U.S. government agency that determines the financial statements that public companies must provide to stockholders and the measurement rules that they must use in producing those statements Financial Accounting Standards Board (FASB) private sector body given the primary responsibility to work out the detailed rules that become GAAP Management Responsibility and the Demand for Auditing Primary responsibility for info in financial statements lies with management, represented by highest officer of company and highest financial officer Three safeguards to ensure accuracy of records o Maintain system of controls over both records and assets o Hire outside independent auditors to verify fairness of statements o Form committee of board of director ...
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ACC 240 Chapter 1 Notes
E. Michigan, ACC 240
Excerpt: ... Accounting 240 Chapter 1 notes I. Accounting Statements A. Terms 1. Accounting: is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers 2. Accounting entity: is the organization for which financial data are to be collected 3. Accounting Period: is the time period covered by the financial statements. 4. Notes: (footnotes) provide supplemental information about the financial condition of a company without which the financial statements cannot be fully understood 5. Generally Accepted Accounting Principles : are the measurement rules used to develop the information in financial statements 6. Securities And Exchange Commission: is the U.S. government agency that determines the financial statements that public companies must provide to stockholders and the measurement rules that they must use in producing those statements 7. Financial Accounting Standards Board: is the private sector body given the primary ...
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FIN640F_Lecture_Outline_02
University of Baltimore, FIN 640
Excerpt: ... FIN 640: Financial Management and Policy Lecture Outline 2: Assessing Financial Performance from Financial Statements This is the outline of the material that we shall cover in this class. After the outline, you will find a list of terminology and formulae introduced in this material. Outline: 1. Learning Objectives LO 2.1: Analyze the basic financial statements issued by the firm: balance sheet, income statement and cash flow statement. LO 2.2: Use the `EDGAR' database from the SEC to access real world financial statements. LO 2.3: Develop models of the balance sheet, income statement and cash flow statement using Excel. LO 2.4: Understand the financial implications of these statements. LO 2.5: Understand the limitations and hazards in the use of financial statements. 2. Excel a. Excel features b. Excel methodology 3. The Balance Sheet a. Accounting liquidity b. Debt versus equity c. Value versus cost 4. The Income Statement a. Generally Accepted Accounting Principles (GAAP) b. Non-cash items c. Time and co ...
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Lecture1
Berkeley, BUSINESS 102
Excerpt: ... systems to be Y2K compliant. UC Berkeley Haas School of Business Financial Accounting UGBA126A Common Misconceptions Some people believe that financial statements report the market value of the company. Financial statements really report the cost of assets, liabilities and stockholders' equity. UC Berkeley Haas School of Business Financial Accounting UGBA126A Some Misconceptions Are all transactions subject to precise and objective measurement? NO ! Almost all accounting numbers are influenced by estimates UC Berkeley Haas School of Business Financial Accounting UGBA126A Misconception Don't confuse bookkeeping with accounting. Bookkeeping involves the routine, clerical part of accounting and requires only minimal knowledge of accounting, but . . . UC Berkeley Haas School of Business An accountant is a trained professional who can design information systems, analyze complex transactions, and interpret financial data. Financial Accounting UGBA126A Generally Accepted Accounting Principles (GAAP) Se ...
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ACC210NotesC02
N.C. State, ACC 210
Excerpt: ... CHAPTER 2 A Further Look at Financial Statements Study Objectives 1. Identify the sections of a classified balance sheet. 2. Identify and compute ratios for analyzing a company's profitability. 3. Explain the relationship between a retained earnings statement and a statement of stockholders' equity. 4. Identify and compute ratios for analyzing a company's liquidity and solvency using a balance sheet. 5. Use the statement of cash flows to evaluate solvency. 6. Explain the meaning of generally accepted accounting principles . 7. Discuss financial reporting concepts. 2-1 Chapter Outline Study Objective 1 - Identify the Sections of a Classified Balance Sheet In a classified balance sheet companies often group similar assets and similar liabilities together as they have similar economic characteristics. The groupings help users to determine (1) whether the company has enough assets to pay its debts and (2) the claims of short-and long-term creditors on the company's total assets. A classified balance ...
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ch02
Wisconsin, ACCT 100
Excerpt: ... CHAPTER 2 A Further Look at Financial Statements Study Objectives 1. Identify the sections of a classified balance sheet. 2. Identify and compute ratios for analyzing a company's profitability. 3. Explain the relationship between a retained earnings statement and a statement of stockholders' equity. 4. Identify and compute ratios for analyzing a company's liquidity and solvency using a balance sheet. 5. Use the statement of cash flows to evaluate solvency. 6. Explain the meaning of generally accepted accounting principles . 7. Discuss financial reporting concepts. Study Objective 1 - Identify the Sections of a Classified Balance Sheet In a classified balance sheet companies often group similar assets and similar liabilities together as they have similar economic characteristics. The groupings help users to determine (1) whether the company has enough assets to pay its debts and (2) the claims of short-and long-term creditors on the company's total assets. A classified balance sheet generally contain ...
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msfinal04FallClosed
Virgin Islands, LAW 345
Excerpt: ... employee can exercise the option [] Question Four (a) Where do generally accepted accounting principles fit in the determination of "profit" from business or property (i) according to the courts; and (ii) practically speaking? [3 marks] -according to the courts generally accepted accounting principles is part of what they call "well-accepted business or accounting principles" or "well-accepted principles of commercial trading" [1] -practically speaking one begins the determination of income from business or property by determining profit according to generally accepted accounting principles [1] and then adjusting that determination for tax purposes according to modifications in the Act and the case law [1] (b) Why do courts not want to define the starting place for the calculation of "profit" as "generally accepted accounting principles "? [2 marks] -to avoid delegating the criteria for the legal test of profit to the accounting profession [1] since the accounting profession makes its own determination of ge ...
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ch01_Students
Virginia Tech, ACIS 3115
Excerpt: ... Financial Accounting and Accounting Standards Chapter One Chapter 1-1 Chapter 1 Learning Objectives 1. Identify the major financial statements and other means of financial reporting. 2. 3. 4. 5. Explain how accounting assists in the efficient use of scarce resources. Describe some of the challenges facing accounting. List the objectives of financial reporting. Explain the need for accounting standards. 6. 7. 8. 9. Chapter 1-2 Identify the major policy-setting bodies and their role in the standard-setting process. Explain the meaning of generally accepted accounting principles . Describe the impact of user groups on the standard-setting process. Understand issues related to ethics and financial accounting. Financial Accounting and Accounting Standards Financial Statements and Financial Reporting Accounting and Capital Allocation Challenges Objectives The Need to Develop Standards Parties Involved in Standard Setting Generally Accepted Accounting Principles Issues in F ...
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Lecture Notes January 23, 2009
Texas A&M, ACCT 315
Excerpt: ... ll ties with their firms, companies, etc. APB members retained their positions with the firms, companies, etc. Only CPAs could be a part of the APB It is not a requirement of the FASB that its members must all be CPAs Due process is an important part of the standard setting by the FASB. Through due process, the FASB hopes to have public support of the standards established by the FASB. The pronouncements that are issued by the FASB are: a. Standards and Interpretations Standards, when issued, become generally accepted accounting principles (GAAP). Interpretations involve modifications or extensions of existing standards. b. Financial Accounting Concepts These do not establish GAAP. Instead, their purpose is to establish fundamental objectives and concepts for the FASB to use to develop future standards. These concepts are part of the Conceptual Framework Project of the FASB. It is the FASB's wish that the conceptual framework be used by companies to solve problems as those problems come to the forefro ...
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Chapter1
Windsor, ACCT 360
Excerpt: ... n Ontario Additional Components Canada Customs and Revenue Agency Publications; Technical Notes and Explanations; GAAP (Generally Accepted Accounting Principles ). Continuing Studies at Western The University of Western Ontario Definition of Income Ordinary Meaning; Economic Perspective; GAAP; Doctrine of Constructive Receipt; Income Vs. Capital. Continuing Studies at Western The University of Western Ontario Computation of Income Sections 3 and 4; Aggregation Formula; Sourcing of Income. Continuing Studies at Western The University of Western Ontario Determination of Income and Taxable Income Subdivision b - Business or Property Income; Subdivision c - Taxable Capital Gains (Losses); Subdivision d - Other Income; Continuing Studies at Western The University of Western Ontario Interpretation of Tax Legislation Plain or Ordinary Meaning of the Words; Unless Otherwise Defined; Intent of Parliament; Explanatory Notes; Supreme Court - Stubart - Object and Spirit Codified Somewhat in Section 245. Cont ...
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252S07Ch1Slides_Student
NMSU, ACCT 252
Excerpt: ... Supplements to the Financial Statements in an Annual Report Management Discussion and Analysis Notes to Financial Statements Auditor's report 24 Management's Discussion and Analysis covers three items: 1. _ 2. _ 3. _ 25 Notes to Financial Statements Explanatory notes and supplementary schedules Clarifies information in financial statements Expands with additional detail Describes accounting policies Explains uncertainties and contingencies 26 Auditor's Report Certified Public Accountant CPA Auditor (CPA) conducts independent examination of financial statements Fair representation? Follow generally accepted accounting principles (GAAP)? Unqualified opinion 27 ...
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Chapter 5
University of Texas, ACC 311
Excerpt: ... Chapter 5: Communicating and Interpreting Accounting Information PLAYERS IN THE ACCOUNTING COMMUNICATION PROCESS Regulators (SEC, FASB, PCAOB, Stock Exchanges) U.S. Securities and Exchange Commission (SEC): protects investors and maintain integrity of securities markets SEC oversees. FASB (who sets generally accepted accounting principles ) PCAOB (who sets auditing standards for independent auditors of pubic companies) Stock exchanges (who sets overall corporate governance standards) Managers (CEO, CFO, and Accounting Staff) Chairman and chief executive officer (CEO): highest officer in company Chief financial officer (CFO): highest officer associated with financial and accounting side of company Responsible for integrity of financial information Accounting staff: actually prepare details of reports; smaller responsibility for accuracy of information Board of Directors (Audit Committee) Board of directors: elected by shareholders; responsible for maintaining integrity of company's financial reports Has an au ...
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Aud Assur Srv 12e- Ch 03- EOC
DeVry Addison, AC 555
Excerpt: ... clusions based upon the results of the audit evidence. The most important information in the opinion paragraph includes: 1. 2. 3. The words "in our opinion" which indicate that the conclusions are based on professional judgment. A restatement of the financial statements that have been audited and the dates thereof or a reference to the introductory paragraph. A statement about whether the financial statements were presented fairly and in accordance with generally accepted accounting principles . 3-5 The auditor's report should be dated February 17, 2006, the date on which the auditor completed the most important auditing procedures in the field. 3-6 An unqualified circumstances: 1. report may be issued under the following five 2. 3. 4. 5. All statements-balance sheet, income statement, statement of retained earnings, and statement of cash flows-are included in the financial statements. The three general standards have been followed in all respects on the engagement. Sufficient evidence has been accumula ...
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Exam04FallClosed
Virgin Islands, LAW 345
Excerpt: ... _ _ QUESTION FOUR (a) Where do generally accepted accounting principles fit in the determination of profit from business or property (i) according to the courts; and (ii) practically speaking? [3 marks] _ _ _ _ _ _ _ _ _ _ Law 345 Taxation Fall 2004 Closed-book Part Professor Gillen page 7 of 6 Code Name: _ _ _ _ _ _ _ _ ...
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CH23_S00
Ole Miss, ACCY 304
Excerpt: ... Chapter 23 Chapter 23 - Accounting Changes and Error Analysis I. APB Opinion No. 20 identifies three types of accounting changes as follows: A. Change in Accounting Principle. A change from one generally accepted accounting principle (GAAP) to anothe ...
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Accounting Chapter 2
Wisconsin, ACCT 100
Excerpt: ... es financial information about the sources and uses of a company's cash + # Financing activities # Investing activities # Operating activities + cash comes from operating and financing activities + Free Cash Flow # measures a company's cash-generating ability # cash remaining from operations after adjusting capital expenditures and dividends # FCF = Cash Provided By Operations - Capital Expenditures - Cash Dividends Explaining the Generally Accepted Accounting Principles The GAAP, FASB, and SE * Generally Accepted Accounting Principles (GAAP) o Accounting Guidelines * Financial Accounting Standards Board (FASB) o primary accounting standard-setting body in US o International Accounting Standards Board (IASB) sets standards for countries outside of the US * Securities and Exchange Commission (SEC) o a US government agency that oversees US financial markets and accounting standard-setting agencies Financial Reporting Concepts Characteristics, Assumptions, Principles, and Constraints * Relevance o makes a diff ...
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auditors
Toledo, MGT 220
Excerpt: ... NOTES COMPILATION ENGAGEMENT1 NOTICE TO READER Wehavecompiledthebalancesheetof[Client]asat_,1999andthestatementsofincome,retainedearningsand cashflowsfortheyearthenendedfrominformationprovidedbymanagement(proprietor).Wehavenotaudited,reviewed orother ...
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