Check point 1 accounting - Checkpoint One: Assumptions,...

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Checkpoint One: Assumptions, Principles, and Constraints Accounting principles have a common set of standards called General Accepted Accounting principles (GAAP) for short. GAAP tells how to report economic events (Kimmel & Kieso2008). Cost principle are not changed if their market values change, objects are recorded at the original costs (Accounting Coach 2010). Other principles according to Accounting Coach are matching, full disclosure, economic entity, periodicity, time period, monetary unit, going concern, materiality, conservatism, industry practices, comparability, consistency, reliability, revelance. Each one of these principles affects how you fill out your financial reports. For example you combine cost with monetary init if the owner’s equity goes up (Accounting Coach 2010). They are also basic assumptions to accounting, basic assumptions of accounting gives you a base for the accounting steps (Kimmel & Kieso 2008).One assumption is a monetary unit which only records data in terms of money (Kimmel & Kieso2008). Economic entity keeps
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This note was uploaded on 11/30/2010 for the course BUS 210 XACC 280 taught by Professor Veilleux during the Spring '10 term at University of Phoenix.

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Check point 1 accounting - Checkpoint One: Assumptions,...

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