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Basic Generally Accepted Accounting Principles (GAAP)


1. Discuss why you feel that GAAP allows so many alternative methods for valuing inventories and computing depreciation. 2. Identify the factors that you, as a manager, would consider in chosing among the alternative inventory and depreciation methods allowed by GAAP. 3. Discuss what you feel might happen if all the firme

Important of GAAP and accounting principles

Questions: 1. What is the distinctive difference between the United States focus on promulgating and implementing accounting principles and that of other countries? What does each system entail? Which perspective, in your opinion, is more advantageous? Why? Which system does an American international company, such as Mich

Concept and theory

Under GAAP goodwill is recorded when purchased. Explain your analysis in detail: ? Present arguments in favor of the capitalization of "purchased" goodwill. You may consider tying your arguments to theories of capital maintenance and or the conceptual Framework. ? Present arguments against the capitalization of "purchased" go

Major expected costs and benefits for globalized businesses

With the globalization of corporate business and cross border security listings, the need for a common set of accounting standards to be applied worldwide emerged to the surface. Both the IASB and the FASB have taken steps towards this goal. As a result, the SEC recently has abolished the reconciliation to US GAAP required f

Determining basis and adjusting events

Please help answer the following questions. How is basis determined? What events can adjust basis up or down? How does tax basis differ from GAAP accounting basis?

GAAP-adjusting of accounts,accrual vs cash basis

State two generally accepted accounting principles that relate to adjusting the accounts. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marsh's law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why? 4. W

Accounting and GAAP

Discuss what is Accounting and why is it important? Be sure to include the different types of users of Accounting and their need for accounting. What is GAAP and why is it important? Please provide references if used in the answer.

Reconciliation to GAAP and IAS 16

Abacab Company's shares are listed on the New Market Stock Exchange, which allows the use of either international financial reporting standards (IFRS) or U.S. GAAP. On Jan 1, Year 1, Abacab Company acquired a building at a cost of $10 million. The building has a 20-yr. useful life and no residual value and is depreciated on a

Convergence of IFRS and U.S. GAAP on Financial Performance

The Financial Accounting Standards Board has undertaken several key initiatives to pursue the goal of convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, the Board conducts several joint projects with the IASB, and it works with the IASB on the

GAAP Related Practice Question's

Three independent unrelated paragraphs follow. Each one contains some unsound reasoning. For this practice, identify the areas that are not in accordance with US GAAP or are not true and explain why the reasoning is incorrect. Complete the identification and explanation of each paragraph before proceeding to the next paragra

Report Situations & Departures From GAAP

Chapter 12, Problem 12.37 Various Report Situations. Assume the auditors encountered the following separate situations when deciding upon the report to issue for the current-year financial statements. 1. The auditor decided that sufficient competent evidence could not be obtained to complete the audit of significant inve

Accounting Principles: Corrections using GAAP

Presented below are a number of business transactions that occurred during the current year for Fresh Horses, Inc. Instructions In each of the situations, discuss the appropriateness of the journal entries in terms of generally accepted accounting principles. (a) The president of Fresh Horses, Inc. used his expense accoun

Basic accounting

A. The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define each of its major components. How are business transactions and financial statements related to the accounting equation? B. Explain t