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In a simple approach, as any kind of "general accepted principles", i.e., a set of rules to standardize something, in this case, the way accounting should be prepared and the way the result of such work should be presented, aiming equality for comparison among different companies. For instance: the way companies should value their fixed assets or inventories and present them in their financial statements. Let's say I have in my store 10 cars for what I paid $10K each but every other store owner, competitor of mine paid $8K. When we present our inventory they all will present an 8K item but if I present a 10K item I would be presenting an overvalued inventory against the market, what could induce someone that I have 100K in stock when actually I have only 80K, because no one would pay me more than would have to pay for my competitor. In this case GAAP would rule me to do a provision for losses in my inventories, to bring it down to the actual market value, and them putting my financial statements in a fair comparability with my competitors.
What else can I help you with?
Who formulated the General accepted accounting principles?
Financial Accounting Standards Board
What are the right that enable auditors to carry out their duties?
general accepted accounting principles (GAAP)
Are there different types of GAAP General accepted accounting principles?
GAAP is nothing but a set of principles followed by a company which helps it to manage effectively and compare the profits and losses of different accounting periods.there are many such principles.
What is the function of general accounting in accounting?
to be General
What does a public accounting worker do?
The general purpose of public accounting workers is to make sure people and companies follow the generally accepted accounting principles in financial statements. Public accounting workers also have a role within the income tax preparation industry.
Who formulated the General accepted accounting principles?
Financial Accounting Standards Board
What do you understand accounting principals discuss the nature and significance of accounting principles?
They are set of accepted accounting standards and general rules.
What are the right that enable auditors to carry out their duties?
general accepted accounting principles (GAAP)
What is General Accepted Accounting Principles?
General Accounting Acceptable Principles, usually referenced as GAAP, is the collection of standards and principles to be used by businesses to record and present the results of their financial activities and their records of what they own and they owe. GAAP can be different between industries and between countries.
Are there different types of GAAP General accepted accounting principles?
GAAP is nothing but a set of principles followed by a company which helps it to manage effectively and compare the profits and losses of different accounting periods.there are many such principles.
What is the function of general accounting in accounting?
to be General
What does a public accounting worker do?
The general purpose of public accounting workers is to make sure people and companies follow the generally accepted accounting principles in financial statements. Public accounting workers also have a role within the income tax preparation industry.
Identify the two main categories of accounting principles?
General Principles and Specific Principles. If you want to know more about "Basic Accounting Principles and Guidelines" go for below url: www[.]accountingcoach.com/accounting-principles/explanation
What The general accounting office assist congress in its oversight function by?
The General Accounting Office (GAO) assists Congress in its oversight function by __________.
Criteria for the general acceptance of accounting principles?
anu tah ?
Full form of GAAP in accounts?
General Accepted Accounting Practices..
Where do you post general reserve in balance sheet?
US Generally Accepted Accounting Principles do not allow for any general reserve in the balance sheet. Reserves are recorded only for specific assets that may have declined in value, such as accounts receivable or inventory.
