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Basic Generally Accepted Accounting Principles (GAAP)

GAAP - Major Objectives of Financial Reporting

What are the major objectives of financial reporting? Who are the users of financial reporting? What type of information will each user group need? Why? What is the purpose of Generally Accepted Accounting Principles (GAAP) and the accounting cycle? Is it possible to deviate from GAAP and the accounting cycle and st

GAAP for zero-interest-bearing note

Wie Company has been operating for just 2 years, producing specialty golf equipment for women golfers. To date, the company has been able to finance its successful operations with investments from its principal owner, Michelle Wie, and cash flows from operations. However, current expansion plans will require some borrowing to

Impairment of fixed assets: Which statement is true under US GAAP?

Which of the following statements concerning the impairment of fixed assets is true under U.S. GAAP? 1. Impairment losses are shown on the income statement net of tax. 2. The test for recoverability compares the present value of all expected future cash flows produced by the fixed asset to its carrying value. 3. To dete

Sources of GAAP

Topic 1: Identify and describe the sources of generally accepted accounting principles. Identify source hierarchy and explain why the hierarchy is important. Topic 2: Describe effective accounting information using the qualities of accounting information from your readings this week. Topic 3: Describe how an accrual base

Which basis of accounting do most companies use, cash or accrual? Is it GAAP?

Which basis of accounting do most companies use, cash or accrual? Why? Which method is approved by GAAP? Why? What are the positives and negatives of each? Is it legal for an organization to keep two sets of accounting records; one for tax and one for book? Why or why not? What transactions might fall under a dual method?

What is GAAP & FASB?

GAAP & FASB (a) What are generally accepted accounting principles (GAAP)? (b) What bodies provide authoritative support for GAAP? (c) What elements comprise the FASB's conceptual framework?

What is the codification of GAAP?

Â?¢ â?¢ Is it authoritative? â?¢ Is the codification used in addition to or replacing FASB, APB, -SEC releases, interpretations, etc? â?¢ How is the codification structured?


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

Countries That Follow Generally Accepted Accounting Principles

Do all countries follow Generally Accepted Accounting Principles (GAAP)? Why or why not? Is there one set of accounting standards followed by all countries? Explain the concept of harmonization of these standards. Please give a full response, approximately 200 words.

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

Shift from GAAP to IFRS

Over the next few years companies will be shifting away form GAAP to IFRS (International Financial Reporting Standards). GAAP was a rules based approach to accounting where IFRS is a more principals based approach to accounting. Does this shift make it easier for investors to analyze companies?

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