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NO it is not practical nor allowed to use both methods a company must pick just one
jamie c
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∙ 11y ago
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Who must use GAAP and why?
Who? US publicly traded companies. Non-publicly traded companies may be required to produce a set of financial statements in accordance with GAAP if applying for a loan. Why? GAAP accounting is nothing more than a common set of principals, terminology, etc. It allows for better communication between organizations, stockholders, individuals, etc. For example, with GAAP the term Revenue means the same thing, no misunderstandings. If you did not have a common set of principals you would not be able to compare on company to another.
What is meant by the phrase generally accepted accounting principles?
GAAP help to ensure that financial information fairly presents a firm's operating results and financial position.GAAP is important for uniformity reasons. Any where in the world as long as the two companies are operating in the same industry you can easy compare them simple because of GAAP.
Journal entry for credit sales?
Buyer a/c dr. To Sales a/c. The GAAP shows such an entry as: Account Receivable (debit) $$$ Sales (Revenue) (credit) $$$ This is based on Double-Entry Accounting as standardized by the GAAP. For example, say you sold a computer to a customer on credit for $1500, the journal entry would read AR (debit) $1500 Revenue (credit) $1500 Some companies use the term Sales, Revenue, and even Income. Which generally refer to the same thing.
Do I file both 1099-R forms from the same place?
If you received two different 1099-R forms from the same place you will have to file both of them. You do need to make sure that these are not just two copies of the same form. If they are two copies then you don't have to file both of them.
What guidelines might the GAAP have for revenue recognition and expense reporting?
According to Generally Accepted Accounting Principles (GAAP), revenue should be recognized when the four criteria are met:Performance has occured.The amount of revenue can be reasonably measured.The cost required to earn the revenue can be reasonably measured.Collection of payment is reasonably assured. * In class our prof taught us an acronym to help us remember it:CRAP - cost is measurable; revuenue is measurable, assurance of collection; performance has occured.In terms of expense reporting, following the matching principle, expenses should be recorded/reported in the same period as the revenue it helped to earn.
Can a company use a hybrid of the percentage of sales and the percentage of receivables methods?
No. It is not practical or correct to use both methods as the same time. According to GAAP, each method is accepted, but management must choose which method to use, independently of the other.
What is gaap?
Generally Accepted Accounting Principles Generally Accepted Accounting Principles (GAAP) is the standard framework of guidelines for financial accounting. It includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. One key aspect of GAAP is an emphasis of "general" as a conceptual realization of variables in method. Far from suggesting that all accounting exercises employ the same method and generate the same results, GAAP accommodates variation in applied accounting methods as long as the methods generally adhere to this set of principles, which are more broad than specific. Pursuant to the foregoing, not only therefore does this provide for variation in method, the natural conclusion is GAAP creates an environment in which financial reporting results can vary depending on purpose. One company in one fiscal year can produce different reports, all completed within GAAP, for different audiences or different purposes, and all these reports can be considered correct.
Why are generally accepted accounting principles needed?
GAAP allows for the fair comparison of accounting information. GAAP allows the work of the accountant to be scrutinized and analyzed on an even level with other similar firms. It allows for greater transparency in accounting practices.
Are methods also known as sub programs or functions?
yes,both are same...methods are also known as functions,we call differently in different programing language
Are audited accounts are free from errors?
While I'm not sure what you exactly the answer is clearly NO. An audit by an audit firm doesn't guarantee anything on any specific account...just that the methods that they looked at and tested for the accounting process used were in accord with a particular system, normally GAAP. (Tax doesn't use GAAP accounting by the way). An audit by the IRS does not prove accuracy of anything...nor does itmean the IRS will accept the exact same thing if it looks again.
What is the difference between the substitution method and the linear combination method?
well,both are different methods but the answers are same.
Does the washer method and cylindrical shells method both give you a relatively same value of volume?
They both give you exactly the same value. However, in some cases solving a problem using both methods is very difficult.
Who must use GAAP and why?
Who? US publicly traded companies. Non-publicly traded companies may be required to produce a set of financial statements in accordance with GAAP if applying for a loan. Why? GAAP accounting is nothing more than a common set of principals, terminology, etc. It allows for better communication between organizations, stockholders, individuals, etc. For example, with GAAP the term Revenue means the same thing, no misunderstandings. If you did not have a common set of principals you would not be able to compare on company to another.
How are alligators and crocodiles the same?
Though crocodiles and alligators have differences in their appearance and habitat, they both practically have the same bone layout, they look rather alike, they hunt in similar methods and prey on similar animals.
What is the difference between SMACNA and DW144?
Both methods are using in HVAC Ducting work mostly about 99% that smacna is using in that same.
Which area have both floods and drought?
Usually areas which have heavy rainfall, at the same time poor draining facilities and rainwater harvesting methods tend to have both floods and drought.
How is a G-Wireless Router and N-wireless Router the same?
They both allow computers to connect without using wires. They use the same frequency.
