Characteristics of Generally Accepted Accounting Principles
Explain the important characteristics of Generally Accepted Accounting Principles or standards. Why are these characteristics of GAAP important?
Basic Generally Accepted Accounting Principles (GAAP)
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Criticize current GAAP in accounting for land
Criticize current GAAP in accounting for land. Does it cause problems in financial analysis? Explain.
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
Financial Accounting Standards Board: Convergence of IFRS and GAAP
The Financial Accounting Standards Board (FASB) has undertaken several key initiatives to pursue the goal of convergence of the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (GAAP). Furthermore, FASB conducts several joint projects with the International Accounting Stand
What is GAAP and why is it important? Name one GAAP that people see in action every day in the workplace.
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
What is the difference between GAAP accounting and tax accounting.
What is the difference between GAAP accounting and tax accounting.
GAAP Questions: Purpose, Application and Consequences
What is the purpose of GAAP and the accounting cycle? Is it possible to deviate from GAAP and the accounting cycle and still prepare financial statements? Why or why not? What are some possible consequences of this course of action? Provide an example.
Departures from GAAP: audit opinions are presented in good form for a qualified opinion and then an adverse opinion. Rule 203 is discussed including the application to Graham Company.
On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current ye
Departures from GAAP/ Audit Reports: Present a qualified audit report in proper form.
On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current ye
Departures from GAAP - Auditing Reports
On January 1, Graham Company purchased land (the site of a new building) for $100,000. Soon thereafter, the Highway Department announced a new feeder roadway route that would run alongside the site. The effect was a dramatic increase in local property values. Nearby comparable land sold for $700,000 in December of the current ye
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
Does the AICPA Code of Professional Conduct work? How is GAAP structured?
In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern? How is the hierarchy of GAAP structured? Are there any higher sources than GAAP?
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
SEC and European equivalent views of GAAP
The SEC and its European equivalent are trying to merge their respective views of GAAP (Generally Accepted Accounting Principles). What are the easy points and what are the stumbling blocks?
Difference between GAAP and tax accounting
Gambali, a calendar-year, accrual basis S corporation, makes regular and substantial contributions to local tax-exempt charitable organizations. On December 20, its board of directors authorized a $175,000 contribution to the Calvin Home for Abused Children. The corporation paid the contribution on January 25. Gambali's ordin
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
Do Political Decisions Influence GAAP?
Research and Development and Start Up costs associated with development are expensed as incurred. Explain the rationale? Do you feel that this treatment is consistent with accounting principles? Why or why not?
Balance sheet for R&R Company
R&R Equipment Company is preparing its annual financial statements in anticipation of applying for a loan. During the last week of the year, R&R received a shipment of inventory but has not paid for it. The invoice indicates that R&R owes $5,000 for the purchase. The owner of R&R, Randy Ray, has decided to omit this asset and th
Deviation from GAAP
Is it possible to deviate from Generally Accepted Accounting Principles (GAAP) and the accounting cycle and still prepare financial statements? What are some possible consequences of this course of action?
Jestin Company: What was the balance in the Accounts Receivable account at the end of Year 5?
The sales, all on account, of the Jestin Company in Year 5, its first year of operations, were $700,000. Collections totaled $500,000. On December 31, Year 5, Jestin Company estimated that 2 percent of all sales would probably be uncollectible. On that date, Bobbin Company wrote off specific accounts in the amount of $6,000.
Accounting: Monetary Unit Assumption; Inflation; Account Debited vs. Credited; Journals; GAAP
2. Identify and describe the steps in the accounting process. 3. (a) Who are internal users of accounting data? (b) How does accounting provide relevant data to these users? 7. What is the monetary unit assumption? What impact does inflation have on the monetary unit assumption? 29. For the following transacti
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
What is the relationship among GAAP, FASB, and the SEC?
What is the relationship among GAAP, FASB, and the SEC?