Explaining Basic Accounting Concepts and Business Structures

Explaining Basic history Concepts and Business Structures To understand accounting at that place are several key concepts and terms to be old(prenominal) with. One must know where Generally Accepted story Principles came from as well as how businesses form. Sources of Generally Accepted Accounting Principles The Securities and Exchange Commission (SEC), American Institute of Certified humans Accountants (AICPA), Financial Accounting Standards lineup (FASB), and the Government Accounting Standards Board (GASB) are the four organizations who developed generally accepted accounting principles (GAAP). The FASB issued a standard, The Hierarchy of Generally Accepted Accounting Principles, that defines the substance of GAAP. This standard identifies the sources of accounting principles and the framework for selecting the principles to be used in the preparation of financial statements (Kieso, 2007, p. 12). The most authoritative sources in home A are the FASB Standards, Interpretations, and Staff Positions, APB Opinions, and AICPA Accounting Research Bulletins. If a company comes across a situation that is not answered in Category A then Categories B through D are available to search. If there is a discrepancy betwixt any syndicate, then the company should follow the higher category (Kieso, 2007, p. 12).

Qualitative Characteristics of Accounting Primary Characteristics Relevance and reliability are the cardinal primary qualities that make accounting information useful for decision making (Kieso, 2007, p. 32). Relevance. In gear up for accounting information to be relevant, it should help users predict the ultimate outcome of past, present, and future events or predictive value (Kieso, 2007, p. 33). It must also help users plunk for or correct prior expectations or feedback value (Kieso, 2007, p. 33). digest it is available to decision makers before it loses its capacity to influence their decisions or timeliness (Kieso, 2007, p. 33). Reliability. Reliable... If you want to get a full essay, order it on our website: Orderessay

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