Q1. (FASB / SEC / ________ / AICPA) are the rules that must be followed when preparing the financial statements
Q2. GAAP stands for ________.
Q3. (________ / Management / Corporate accountants) conduct audits that attest to whether a company’s financial statements comply with GAAP.
Q4. An auto has a sticker price of $20,000. A company purchases the auto, but negotiates with the sales person and pays a price of only $18,000. On the balance sheet, (________ / $20,000) will be reported for the auto. Thirty years ago, land was purchased for $2,000, which now has a current market value of $100,000. On the balance sheet, (________ / $100,000) will be reported for the land.
Q5. When the financial statements are prepared according to GAAP, assets and services are reported at their (________ / current market value).
Q6. THINK ABOUT IT: Is knowledge of an asset’s current market value ever useful? (______ / No) If so, when?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Question Posted: September 17, 2015 07:08:34