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Unformatted text preview: C1-9The simplest answer to the questions of what are the rules and how do they apply to financial reporting would be to refer the interested party to GAAP. GAAP stands for Generally Accepted Accounting principles. These principles 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 (pg 9, Intermediate Accounting I).The principles are as follows: regularity, consistency, sincerity, permanence of methods, non compensation, prudence, continuity, full disclosure/materiality, and the principle of utmost good faith. All of the principles of GAAP are standardized and are expected to be incorporated into practice of businesses financial reporting. All of them are important and all of the principles should be adhered to.C1-12If I witnessed a classmate cheating and then receive a better grade then myself, I would be highly upset! However, the classmate receiving a better grade, even though they cheated, highly upset!...
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This note was uploaded on 08/15/2011 for the course SCIENCE 300 taught by Professor Alexander during the Spring '11 term at Kaplan University.
- Spring '11