GAAP CONCEPTS - Materiality whole impact on financial...

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GAAP CONCEPTS, CHAPTERS 1-4 Cost Principle – assets are recorded at cost. Cost-Benefit Rule - benefit more than cost to buy it. Objectivity – Financial statements are reviewed objectively by independent CPA certified public accountant Comparability – 2 consecutive financial statements Full Disclosure – its footnotes for all items to explain financial statements. Consistency – each must be kept from year to year or month to month
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Unformatted text preview: Materiality whole impact on financial statement by accountants judgment call Revenue Realization realize revenue when earned not necessarily when cash received Matching Principle match expense used up in process of making revenue not necessarily when cash paid Conservatism record accounts at conservative value = equip less AD = net carrying value...
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GAAP CONCEPTS - Materiality whole impact on financial...

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