Week 1 Checkpoint 1- Accounting Assumption-Principles-Constraints

Week 1 Checkpoint 1- Accounting Assumption-Principles-Constraints

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Assumptions in Accounting, Principles, and Constraints The G.A.A.P., or generally accepted accounting principles, was developed to try and standardize the way in which the principles were accepted and universally practiced within the United States. The entity within the United States that sets forth these principles is the F.A.S.B., or Financial Accounting Standard Board. This board is watched in the United States by the S.E.C., or Securities Exchange Commission. There is also a board called the I.A.S.B., or International Accounting Standards Board, that sets the principles by which many countries of the world practice accounting principles. The basic accounting assumptions state that for the Monetary Unit, only transactions that can be expressed in terms of money can be considered a part of the accounting data. The Economic Entity concludes that the activities of the business or organization must be kept separate from the activities of the owners or other economic units. The Time Period can be
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Week 1 Checkpoint 1- Accounting Assumption-Principles-Constraints

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