This post addresses GAAP, bad debt, and related issues.
Not what you're looking for?
What does Generally Accepted Accounting Principles (GAAP) require? Why? Should all companies have bad debt?
Purchase this Solution
Solution Summary
The solution provides a thorough discussion explaining what GAAP requires and if all companies should have bad debt.
Solution Preview
What does Generally Accepted Accounting Principles (GAAP) require?
At the most basic and essential level, GAAP requires that all organizations preparing financial statements be in conformity with each other. GAAP is a large compilation of the concepts, principles, procedures, and regulations that have been developed by the Financial Accounting Standards Board (FASB).
Three main sources of GAAP are used. The main source of GAAP is always pronouncements passed by the FASB. The other main sources are regulations that have been developed by the Securities and Exchange Commission, and accounting practices that have been developed by both private and public bodies. All companies that are regulated by the SEC must adhere to GAAP. Publicly traded companies cannot compile a financial statement not in accordance with GAAP.
Privately held ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.