3 - 1.Generally accepted accounting principles (GAAP) are...

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1.Generally accepted accounting principles (GAAP) are the practice and procedure guidelines used to prepare and maintain financial records and reports; authorized by the Financial Accounting Standards Board (FASB). The accounting profession’s rule- setting body, which authorizes generally accepted accounting principles (GAAP). The Sarbanes-Oxley Act of 2002, passed to eliminate the many disclosure and conflict of interest problems of corporations, established the Public Company Accounting Oversight Board (PCAOB), which is a not-for-profit corporation that overseas auditors. The PCAOB is charged with protecting the interests of investors and furthering the public interest in the preparation of informative, fair, and independent audit reports. 2.The income statement provides a financial summary of the firm's operating results during a specified period. The balance sheet presents a summary of a firm’s financial position at a given point in time. The statement of retained earnings reconciles the net income earned during a given year, and any cash dividends paid, with the change in retained earnings between the start and the end of that year. The statement of retained earnings is an abbreviated form of the statement of stockholder’s equity. The statement of cash flows provides a summary of the firm’s operating, investment,
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3 - 1.Generally accepted accounting principles (GAAP) are...

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