b. In general, financial accounting statements are prepared in accordance with generally accepted accounting principles (GAAP)....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
b. In general, financial accounting statements are prepared in accordance with generally accepted accounting principles (GAAP). Which of the following statements about GAAP is false? The Securities & Exchange Commission has the responsibility for the format and contents of financial statements. The Financial Accounting Standards Board (FASB) is the primary source of GAAP for private entities. GAAP is based on a set of ten assumptions, principles, and constraints. Most private not-for-profit organizations are required to follow GAAP. GAAP requires all organizations to use cash accounting. a. C. d. b. C, d. c. Which of the following statements about cash accounting is most correct? a. b. Cash accounting recognizes an event when the cash transaction takes place. Cash accounting is less complex than accrual accounting. Cash accounting statements are relatively easy to convert to tax filing documents. Only small, typically unaudited, businesses use cash accounting. All of the above answers are correct. The notes to the financial statements typically are longer than the financial statements themselves and contain important information that amplifies the information on the statements themselves. a. True False b. In general, financial accounting statements are prepared in accordance with generally accepted accounting principles (GAAP). Which of the following statements about GAAP is false? The Securities & Exchange Commission has the responsibility for the format and contents of financial statements. The Financial Accounting Standards Board (FASB) is the primary source of GAAP for private entities. GAAP is based on a set of ten assumptions, principles, and constraints. Most private not-for-profit organizations are required to follow GAAP. GAAP requires all organizations to use cash accounting. a. C. d. b. C, d. c. Which of the following statements about cash accounting is most correct? a. b. Cash accounting recognizes an event when the cash transaction takes place. Cash accounting is less complex than accrual accounting. Cash accounting statements are relatively easy to convert to tax filing documents. Only small, typically unaudited, businesses use cash accounting. All of the above answers are correct. The notes to the financial statements typically are longer than the financial statements themselves and contain important information that amplifies the information on the statements themselves. a. True False
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below Answer 1 The false statement about GAAP ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these accounting questions
-
Examine the starter code StudentChooser.java . Replace each ? in the code with the number of students in your class. If you have a very large class, use a subset of all students. There are 10...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Video and Image data With the ubiquity of video and image capture devices, visual data are more prevalent than ever. The use of these data to augment accounting records is quickly becoming a reality...
-
In the real number system the equation a2 = 1 has exactly two solutions. Find at least eight different 3 3 matrices that satisfy the equation A2 = I3.
-
How does a nonfamily household differ from a family household? Discuss.
-
In 2015, Leppard Inc. issued 1,000 ordinary shares of $10 par value for land worth $40,000. (a) Prepare Leppards journal entry to record the transaction. (b) Indicate the effect the transaction has...
-
Find the value of the following numbers modulo 12. 1. 93 2. 387
-
The daughter of the owner of a local hamburger restaurant is preparing to open a new fast-food restaurant called Hasty Burgers. Based on the arrival rates at her fathers outlets, she expects...
-
QZ. Manuka International Co., is considering a development project that costs $3.8 million today and is expected to generate constant annual cash flow of $267,000 in perpetuity, with the first cash...
-
A partially completed worksheet for At Home Pet Grooming Service, a firm that grooms pets at the owner's home, follows. INSTRUCTIONS 1. Record balances as of December 31 in the ledger accounts. 2....
-
Consider a position you are in now (or have been in the past). Wearing the 'hat' of a HR professional, consider what you would do to redesign the job if you had the opportunity. Would you want the...
-
A partial trial balance of Sandhill Corporation is as follows on December 31, 2026. Dr. Cr. Supplies $2,900 Salaries and wages payable $1,500 Interest receivable 5,400 Prepaid insurance 97,100...
-
1. For the given circuit, determine Number of the nodes Number of equations for applying KCL. Label the node voltages and list all the equations needed for the node-voltage method 202 152 wwwwww $6...
-
A Swiss company holds a bond investment in a U . S . company that pays interest in USD. If the CHF / USD exchange rate fluctuates by 5 % over the year, calculate the exchange gain or loss.
-
13) Outdoor Gear Corporation manufactured 5,000 coolers during October. The following variable overhead data relates to October: Variable overhead spending variance Variable overhead efficiency...
-
PART V. Norton Company's manufacturing costs for 2009 were as follows: Direct materials, P300, 000; Direct labor - P400,000; Factory overhead variable - P80, 000 and fixed - P50,000. 18. Prime cost...
-
After-Tax Cost of Debt LL Incorporated's currently outstanding 8% coupon bonds have a yield to maturity of 12%. LL believes it could issue new bonds at par that would provide a similar yield to...
-
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
-
Nancy owed Sharon $1,500, but Sharon did not initiate a lawsuit to collect the debt within the time prescribed by the statute of limitations. Nevertheless, Nancy promises Sharon that she will pay the...
-
After part of the shares of a proposed corporation had been successfully subscribed, one of the promoters hired a carpenter to repair a building that was to be conveyed to the proposed corporation....
-
L.V.R.V. Inc., D/B/A Wheelers Las Vegas RV (Wheelers) sold a 1996 Coachmen Santara motor home (the RV) to * * * Arthur R. Waddell and Roswitha M. Waddell (the Waddells). * * * *** * * * Before they...
-
6. Craig Hare offered computers and related equipment for sale on various Internet auction Web sites. He accepted payment but not responsibility-he never shipped the goods. Both the FTC and the U.S....
-
5. What can you do to protect your privacy online? Draw up a concrete list of steps that you might reasonably consider. Are there some actions that you would not be willing to take, either because...
-
4. Anthony Davis operated a computer bulletin board system that permitted users to send and receive e-mail, access the Internet, and download software. Davis's system had one attribute that...
Study smarter with the SolutionInn App