Chapter 2, Problem 2.7BE

(a)

To determine

Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting.

Financial Accounting Standards Board (FASB): This is the organization which creates, develops, and approves accounting standards; and administrates GAAP.

Internal Revenue Service (IRS): This is the governing body of tax laws called as Internal Revenue Code (IRC).

To indicate: Whether statements (a) and (b) are true or false

(b)

To determine

To indicate: Whether statements (a) and (b) are true or false