Gaap

Natalia Rodríguez Basurto

A01017165

9/08/12

• What are the generally accepted principals? List them.

“Set of accounting rules that are authoritative in a given jurisdiction” (Stice et all. 12).

Cost principle, full disclosure principle, going concern principle, matching principle, revenue recognition principle, materiality, conservatism, economic entity assumption, monetary unit assumption, and time period assumption. (Accounting Principles. Parr. 6)

• Define the different types of accounting and explain them briefly.

- Financial Accounting: Information provided for and used by external users. (Stice et all. 820)

- Managerial or Management Accounting: Information provided for internal users. (Stice et all. 822)

- Governmental Accounting: Accounting information system used in public sector. (“Types of Accounting”. Parr. 3)

- Tax Accounting: Tax related matters; governed by the tax rules prescribed by the tax laws of jurisdiction. (“Types of Accounting.” Parr. 4)

• Main objectives of financial accounting.

- Collect, measure and record an enterprise’s transactions.

- Summarize and communicate the results of the transactions to users.

- Handle routine of bookkeeping tasks and structure the information.

- Evaluate the performance and health of the business.

("The Nature and Functions of Financial Accounting." Parr. 1)

• List the main characteristics of financial information.

- Relevance, reliability, comparability, and consistency. ("Qualitative Characteristics of Accounting Information." Parr. 1)

Bibliography:

• "Accounting Principles." AccountingCoach. Web. 07 Aug. 2012. .

• "Types of Accounting." Accounting Simplified. Web. 07 Aug. 2012. .

• "The Nature and Functions of Financial Accounting." McGrawHill. Web. 07 Aug. 2012. .

• "Qualitative Characteristics of Accounting Information." Intermediate Accounting....