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The General Accounting and Finance System is generally referred to as?
BQ
What is the relevance of the accounting principles in the accounting practice?
There are general rules and concepts that govern the field of accounting. These general rules-referred to as basic accounting principles and guidelines-form the groundwork on which more detailed, complicated, and legalistic accounting rules are based. For example, the Financial Accounting Standards Board (FASB)uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's management and the independent accountants must certify that the financial statements and the related notes to the financial statements have been prepared in accordance with GAAP.GAAP is exceedingly useful because it attempts to standardize and regulate accounting definitions, assumptions, and methods. Because of generally accepted accounting principles we are able to assume that there is consistency from year to year in the methods used to prepare a company's financial statements. And although variations may exist, we can make reasonably confident conclusions when comparing one company to another, or comparing one company's financial statistics to the statistics for its industry. Over the years the generally accepted accounting principles have become more complex because financial transactions have become more complex.RelevanceRelevance requires that the financial accounting information should be such that the users need it and it is expected to affect their decisions.Reliability requires that the information should be accurate and true and fair.Relevance and reliability are both critical for the quality of the financial information, but both are related such that an emphasis on one will hurt the other and vice versa. Hence, we have to trade-off between them. Accounting information is relevant when it is provided in time, but at early stages information is uncertain and hence less reliable. But if we wait to gain while the information gains reliability, its relevance is lost.ExamplesAfter the balance sheet date but before the date of issue a company wants to dispose of one of its subsidiaries and is in final stages of reaching a deal but the outcome is still uncertain. If the company waits they are expected to find more reliable information but that would cost them relevance. The information would be outdated and no longer very relevant.After the balance sheet date during the time when audit is carried out, it becomes clear which debts were realized and where were not hence it improves the reliability of allowance for bad debts estimate but the information loses its relevance due to too much time being taken. Timeliness is key to relevance.
How do you explain accounting as a language of business?
Accounting is often referred to as "the language of business."
Define accounting and principles of accounting?
Accounting is the process of communicating financial information about a business entity to users such as shareholders and managers. Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as, "the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of financial character, and interpreting the results thereof." The principles of accounting are basically the rules and regulation set by a committee, in the U.S.A. these rules are set by the Financial Accounting Standards Board (FASB) and are referred to as Generally Accepted Accounting Principles (GAAP). In short the GAAP is a codification of how a business prepare and present their business income and expenses, assets, and liabilities on their financial statements.
What is cross-referencing in accounting?
Cross referencing in accounting refers to the practicing of adding to the related accounting information in another location. Accounting is usually referred to as the language of business.
What is sometimes referred to as what private accounting?
Private accounting is sometimes referred to as management accounting. It involves the process of preparing financial information for internal stakeholders, such as company management, to assist in decision-making, budgeting, and performance evaluation. Unlike public accounting, which focuses on external reporting and compliance, private accounting emphasizes internal operations and strategies.
What is green antifreeze?
The green colour is just a dye. Green antifreeze is generally referred to as "universal" antifreeze - it's accepted in a very wide range of motors, both petrol and diesel.
Which accounting principle requires that transaction should be recorded in the period they occurred?
There is no one accounting principle that requires that a transaction be recorded in the period it occurs (commonly referred to as accrual basis accounting). There is a conceptual statement that the Financial Accounting Standard Board has issued with regard to the use of accrual accounting. The Financial Accounting Standards Board has issued STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS NO. 6: ELEMENTS OF FINANCIAL STATEMENTS which states in paragraph 134: Items that qualify under the definitions of elements of financial statements and that meet criteria for recognition and measurement are accounted for and included in financial statements by the use of accrual accounting procedures. The basis of accounting, whether cash basis or accrual, should be disclosed in the notes to the financial statements so that the financial statement reader is aware which method of accounting is in use. Generally accepted accounting principles (GAAP) does require the accrual basis of accounting; nevertheless, businesses can present their financial statements on a cash basis as long as proper disclosures are made. The financial statement opinion rendered by the external audit firm would also disclose that the cash basis of accounting is being used.
What is a accounting period of twelve months duration usually referred to as?
fiscal year
What is a mother llama called?
Llamas generally do not have sex based names, but some people will refer to them as dams. This is NOT widely accepted. They are most often just referred to as "the mother" or "the mom".
What is the smallest type of asteroid called?
Anything smaller than 50 meters on its longest axis is generally referred to as a meteoroid. This isn't a universally accepted terminology (yet) but it is a widely accepted convention. As far as I know it is the only naming convention for the bottom end of the size spectrum.
Is a statement of opinion that is generally accepted as truth but is not always verifiable?
Yes, a statement of opinion that is generally accepted as truth but is not always verifiable can be referred to as a "common belief" or "conventional wisdom." These statements often reflect societal norms or widely held views, but they may lack empirical evidence to support them. As a result, while many people may accept them as true, they remain subjective and can vary in validity.
