Question

Generally accepted accounting principles are: mandatory rules applied to both financial and management accounting. standards of...

Generally accepted accounting principles are:

mandatory rules applied to both financial and management accounting.

standards of accounting, a material departure from which may result in a qualified opinion issued by an auditor.

optional procedures for recording economic events.

the rules of accounting, prescribed exclusively by Federal regulatory agencies.

Homework Answers

Answer #1
  • Correct Answer is Option #2, Generally Accepted Accounting Principles (or GAAPs) are the standards of accounting, a material departure from which may results in a qualified opinion issued by an auditor.
  • GAAPSs are the basis on which universal accounting statements are prepared. They provide a basis at which the accounting is to be done.
  • Any departure from GAAP can cause serious issues and mis-statement in the financial statement data, and hence the same are audited by the auditor.
  • These are not for ‘managerial accounting’ (Option #1), or Optional (Option #3) or by any Federal agencies (Option #4)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
US generally accepted accounting principles(GAAP) is similiar but not identical to International Financial Reporting Standards (IFRS)....
US generally accepted accounting principles(GAAP) is similiar but not identical to International Financial Reporting Standards (IFRS). Please compare and contrast their financial accounting guidelines.
Compare and contrast the institutional process used by FASAB for establishing generally accepted accounting principles for...
Compare and contrast the institutional process used by FASAB for establishing generally accepted accounting principles for the federal government with the process used by FASB for developing accounting standards.
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles....
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following: The general partners in a limited partnership are presumed to control that limited partnership regardless of the extent of the general partners' ownership interest in the limited partnership. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following:...
1. The standards, procedures, and principles companies must follow when preparing their financial statements are known...
1. The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? a. generally accepted accounting principles (GAAP) b. Financial Accounting Standards Board (FASB) c. Securities and Exchange Commission (SEC) d. conceptual framework 2. Which of these events will not be recognized? a. A copy machine is ordered. It will be delivered in two weeks. b. A service is performed, but the payment is not collected on the same day. c....
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles....
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following: An operating segment is a component of a public entity that has all of the following characteristics: a.  It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). b.  Its operating results are regularly reviewed by the...
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles....
The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following: 1.A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that generally...
The auditor’s judgment concerning the overall fairness of presentation of financial position, results of operations, and...
The auditor’s judgment concerning the overall fairness of presentation of financial position, results of operations, and changes in cash flow is applied within the framework of: a.         quality control. b.         generally accepted auditing standards which include the concept of materiality. c.         the auditor’s evaluation of the audited company’s internal control. d.         generally accepted accounting principles To emphasize the fact that the auditor is independent, the addressee of the audit report is usually not: a.         the company’s management. b.         the stockholders of the client company. c.         the board...
Which of the following is not true about generally accepted accounting principles (GAAP)? GAAP provide guidelines...
Which of the following is not true about generally accepted accounting principles (GAAP)? GAAP provide guidelines as to how to account for specific events impacting the financial performance of a firm The application GAAP accounting rules help ensure consistency so analysts can compare one firm’s financial performance to another It is customary for Definitive Purchase Agreements to require that a target company represent that its financial books are kept in accordance with GAAP GAAP always guarantees that a firm’s financial...
Q1 Generally accepted auditing standards are A Required procedures to be used to gather evidence to...
Q1 Generally accepted auditing standards are A Required procedures to be used to gather evidence to support financial statements. B Policies and procedures designed to provide reasonable assurance that the CPA firm and its personnel comply with professional standards. C Pronouncements issued by the Auditing Standards Board. D    Rules acknowledged by the accounting profession because of their universal application. Q2 An attestation engagement is one in which a CPA is engaged to A Testify as an expert witness in accounting,...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and...
19.   Under to PSA 260, those matters that arise from the audit of financial statements and in the opinion of the auditor, are both important and relevant to those charged with governance in overseeing the financial reporting and disclosure process are called a.   Audit matters of governance interest b.   Significant audit matters c.   Auditor findings d.   Material misstatement in the financial statements 20.   Audit matters of governance interest to be communicated to those charged with governance ordinarily include a.   Audit...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT