Principles of Accounting I Notes.docx - Chapter 1: What is...

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Chapter 1:What is accounting, and who uses it?
What are the organizations and rules that govern accounting?
oGoing concern assumptionassumes a business entity will remain in business forthe foreseeable futureoMonetary unit assumptionassumes items on financial statements recorded inmonetary units such as the dollaroInternational Accounting Standards Board (IASB)createsInternational FinancialReporting Standards (IFRS)Typically considered less specific than GAAPRequired in more than 120 countriesoAnauditis an examination of a company’s financial statements and recordsoSEC requires companies to have financial statements independently auditedoSarbanes-Oxley Act (SOX)holds companies accountable for the accuracy of theirfinancial recordsCriminalized the falsifying of financial reportsCreated Public Company Accounting Oversight Board (PCAOB)The accounting equationoAssets=Liabilities+EquityAssetsare resources owned or controlled by the business

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Term
Summer
Professor
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Tags
Accounting, Financial Accounting, Balance Sheet, Generally Accepted Accounting Principles

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