Generally Accepted Accounting Principles

organizations may now use accounting software to aggregate information into their financial statement (Accounting Tools, n.d.). The chart of accounts is important because an organized list of accounts data lays the foundation for keeping track of any transactions going in and out of the organization and provides the status of the accounts to those making decisions internally…

basis of accounting uses elements of both the cash basis and accrual basis of accounting. The cash basis you recognize a transaction when there is either incoming cash or outgoing cash. The receipt of cash from a customer triggers the recordation of revenue, while the payment of a supplier triggers the recordation of an asset or expense. The accrual basis you record revenue when it is earned and expenses when they are incurred, irrespective of any changes in cash. Accrual accounting is…

The Financial Accounting Standards Board (FASB) has been the assigned organization in a private sector for establishing standards. These standards are important to be useful because it allows investors to make informed decisions. Financial information must be reliable, consistent and transparent. Transparency refers to high-quality financial statements that are clear and easy to understand. Being transparent in financial reporting allows investors, creditors and the market to properly evaluate…

Wall Street earnings. During this time investors and lenders were more concerned with revenue than profits. Generally Accepted Accounting Principles (GAAP), stated if policies and procedures were not violated then they are considered legal, and ethically adequate. This allowed HealthSouth to meet expectations of analyst for 40 consecutive quarters, by using creative and fraudulent accounting methods. The false recordings increased earnings matched by increases in HealthSouth's assets. In 2002,…

(IFRS) and Generally Accepted Accounting Principles (GAAP) are rules and guidelines established to attempt to standardize accounting and recording practices across the United States and Internationally. While United States has traditionally used GAAP, the ever changing world market makes it necessary for the US to begin to use IFRS in conjunction with or sometimes in place of GAAP. In an effort to standardize fair value measurements for financial instruments, the Financial Accounting Standards…

one of constant change. The accounting industry like all others, is experiencing the effects of globalization and as the U.S. accounting industry continues to press forward with replacement of rules-based accounting standards under the U.S. Generally Accepted Principles, with principles-based accounting standards under International Financial Reporting Standards, adoption of IFRS is inevitable. Leading the push for a single set of high-quality International accounting standards is the U.S.…

financing, they search for the anticipated cash flow. The risk of the investor in company finance is much higher compared to project financing. When the company financing risk is higher it means that the return (ROI) are generally higher. Although in project financing the returns are generally lesser due to the lower risk 4. What could be the use of the Balance Sheet for Project Manager? The balance sheet is a document that provides a quick snapshot of the company’s standing at a given time.…

income statement, HealthSouth deducted the contractual adjustment from its gross revenues to get net revenues, which were reported in the periodic financial reports and filed with the U.S. Securities and Exchange Commission. Since generally accepted accounting principles claim any increase in revenue or decrease in expenses on the Income Statement should be in accordance with either an assets increase or…

Program: BA in Business Studies 2. Track: Accounting 3. Course Code: BE210 (BE210/4) 4. Course Title: Introduction to Financial Accounting 5. General Course Coordinator, GCC: Prof. Ahmad Al-Omari 6. TMA Grade Distribution: Criteria Content Deductions: Format & Presentation; Referencing; Word count and E-library Total marks Kuwait Food Company (Al Americana) Marks 20 each ; in total maximum deductions 20 About TMA: The TMA covers the financial accounting concepts and practices in the…

Define financial accounting and managerial accounting. What are the characteristics of financial accounting and managerial accounting? Financial Accounting is define as the art of recording, categorizing, summarizing and reporting a business transaction in a trivial fashion and in regards to money, the summary of this transactions are in the preparation of financial statement, which includes, income statement, balance sheets and cash flow statement, that sum up and interpret the operations…