Answered: Generally Accepted Accounting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What do you understand as the meaning of the term Generally Accepted Accounting Principles (GAAP)? Discussion should involve a description of its component parts (bodies of influence) in defining the role of the accountant.

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Step 1

Generally accepted accounting principles (GAAP) seek advice from a standard set of accounting principles, standards, and procedures issued by the monetary Accounting Standards Board (FASB). Public corporations within the North American country should follow collection once their accountants compile their monetary statements. collection is that the set of accounting principles set forth by the FASB that North American country corporations should follow once developing monetary statements.

collection aims to enhance the clarity, consistency, and equivalence of the communication of economic info.
collection could also be contrasted with professional forma accounting, that may be a non-GAAP monetary reportage methodology.
the final word goal of collection is to confirm a company's monetary statements square measure complete, consistent, and comparable.

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