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GAAP

What is GAAP and why is it important? Name one GAAP that people see in action every day in the workplace.

What is the Accounting Equation? Does it always have to balance, if so why? Are there exceptions to this general rule? If so, what are they?

How do the following business entities relate to each other and how are they different? Proprietorship, Partnership, and Corporation

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What is GAAP and why is it important? Name one GAAP that people see in action every day in the workplace.

The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information.

GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial data via financial statements. If a financial statement is not prepared using GAAP principles, it will attract legal implications for the company.

source: http://ezinearticles.com/?Sole-Proprietorship,-Partnership,-or-Corporation?&id=346737

All the accounting practices in daily life, be it treatment of depreciation, valuation of inventory, etc. are all examples of GAAP.

What is the Accounting Equation? Does it always have to balance, if so why? Are there exceptions to this general rule? If so, what are they?

The Accounting Equation is an essential notion in financial accounting. The equation derives from assets and claims on assets. Assets are what a company owns, such as equipment, buildings and inventory. Claims ...

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What is GAAP and why is it important? Name one GAAP that people see in action every day in the workplace.

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