Why do we have an accounting system? And what's the difference between the US system vs. and International system (ex. foreign currency)?© BrainMass Inc. brainmass.com March 4, 2021, 8:21 pm ad1c9bdddf
We have an accounting system or set of standards to ensure that there is consistency in financial reporting and standardized way to manage accounting records in all the organizations in a given country. It ensures that there is standardized output in terms of financial statements as well as prevent misuse and frauds.
Generally accepted accounting principles (GAAP) are the basis of financial accounting and reflect federal financial accounting standards. GAAP is important to US firms. Generally accepted accounting principles (GAAP) ensures that all companies are on a level ...
This solution discusses the purpose of accounting.