Question

In: Accounting

Please describe each term listed below. Accounting Standards Update (ASU) Generally Accepted Accounting Principles (GAAP) Cost...

Please describe each term listed below.

Accounting Standards Update (ASU)

Generally Accepted Accounting Principles (GAAP)

Cost Constraint (in regards to financial reporting)

Accounting Standards Codification (ASC)

Materiality

Measurement

Presentation

Recognition

Disclosures

Going Concern Assumption

Expert Solution

solution :

Accounting Standards Update (ASU):
The FASB issues an Accounting Standards Update (Update or ASU) to communicate changes to the FASB Codification, including changes to non-authoritative SEC content.

Generally Accepted Accounting Principles (GAAP):
Generally accepted accounting principles (GAAP) refer to a common set of accepted accounting principles, standards, and procedures that companies and their accountants must follow when they compile their financial statements. ... GAAP improves the clarity of the communication of financial information.

Cost Constraint (in regards to financial reporting):
In accounting, a cost constraint arises when it is excessively expensive to report certain information in the financial statements. ... The cost constraint only applies to certain types of financial reporting requirements, which are specifically identified in the accounting standards.

Accounting Standards Codification (ASC):
The FASB Accounting Standards Codification is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. The Codification is effective for interim and annual periods ending after September 15, 2009.

Materiality:
The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a reader of the financial statements would not be misled.

Measurement:
Accounting measurement is the computation of economic or financial activities in terms of money, hours or other units. An accounting measurement is a unit of some measurable element that is used to compare and evaluate accounting data. Accounting is often measured in terms of money.

Presentation:
Accountancy or accounting is the art of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management .

Recognition:
The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period, in which revenues and expenses are recognized.

Disclosures:
A disclosure is additional information attached to an entity's financial statements, usually as explanation for activities which have significantly influenced the entity's financial results.

Going Concern Assumption:
The going concern principle is the assumption that an entity will remain in business for the foreseeable future. Conversely, this means the entity will not be forced to halt operations and liquidate its assets in the near term at what may be very low fire-sale prices.

ekkarill92 answered 2 years ago

The Financial Accounting Standards Board is the primary source of generally accepted accounting principles (GAAP) for...

The Financial Accounting Standards Board is the primary source of generally accepted accounting principles (GAAP) for all health care organizations. Do you agree with this statement? Why or why not?

The Financial Accounting Standards Board (FASB) is responsible for the Generally Accepted Accounting Principles (GAAP). Select...

The Financial Accounting Standards Board (FASB) is responsible for the Generally Accepted Accounting Principles (GAAP). Select a Concept or Principle and explain how it impacts business.

Describe the purpose of U.S. generally accepted accounting principles (U.S. GAAP) and the benefits that these...

Describe the purpose of U.S. generally accepted accounting principles (U.S. GAAP) and the benefits that these rules provide.

Prepare a chronology of generally accepted accounting principles (US, GAAP).

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. Typed answer please.

Auditors must be concerned with both generally accepted auditing standards and generally accepted accounting principles in...

Auditors must be concerned with both generally accepted auditing standards and generally accepted accounting principles in performing an audit. Compare generally accepted auditing standards with generally accepted accounting principles. Summarize two of the three generally accepted auditing standards known as the general standards. . Note: The answer must be 400 to 500 words please

1) What are Generally Accepted Accounting Principles (GAAP)? (1 point) 2) Describe the format of the...

1) What are Generally Accepted Accounting Principles (GAAP)? (1 point) 2) Describe the format of the income statement. (1 point) 3) What is an expense? Provide two examples of expenses that can be found on the income statement. (2 points) 4) Review the income statement format. Why is operating income different from net income? (1 point) 5) Explain what is meant by non-operating income and provide an example (1 points) 6) What is an asset? (1 point) 7) What is...

Generally accepted accounting principles (GAAP) fail to capture all the transactions that are relevant for the...

Generally accepted accounting principles (GAAP) fail to capture all the transactions that are relevant for the valuation of a firm. Discuss the main areas where GAAP is deficient for the purposes of valuation.

What parts of Generally Accepted Accounting Principles, are not generally accepted?

1. Accounting is subject to the rules of Generally Accepted Accounting Principles (GAAP), which sets provisions...

1. Accounting is subject to the rules of Generally Accepted Accounting Principles (GAAP), which sets provisions for how accounting information is presented. Sometimes, GAAP requires actions that affect reported financial results, think revemue recognition, reserves for doubtful accounts, alternative depreciation methods, accounting for taxes. Do accounting profits provide a good measure of business performance? Why or why not? 2. The goal of financial management is to maximize the wealth of the shareholders. Do you think management should focus more on...