Question: 1. As explained in chapter one, accounting is a measurement and communication discipline based on rules referred to as generally accepted accounting (GAAP). Explain what

1. As explained in chapter one, accounting is a measurement and communication discipline based on rules referred to as generally accepted accounting (GAAP). Explain what are pros and cons of GAAP?

2. In your opinion should GAAP applies Globally? Why or why not?

3. Explain the difference between an Income Statement, Balance sheet, Statement of Change in Stockholders' Equity, and Statement of Cash flow.

4. How does recognizing depreciation expense impact assets and equity in an accounting system?

5. How does the Double-declining-balance method differ from the Straight-line?

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1 Pros and Cons of GAAP Pros Standardization GAAP provides a set of rules and principles that ensure consistency in financial reporting across different companies industries and countries Credibility ... View full answer

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