General Accounting Principles

score has been utilized by many successful companies and non to successful companies to make decisions regarding the companys pecuniary matters. For force 1 Case, we are tasked with a two part assignment. For destiny 1 we leave explore and define common intelligent injury utilized in beaking for decision making, which leave alone essence in a better sagacity for the savant in relation to accounting. For Part 2 we lead tool what we work read in our background reading and record understanding in researching three companies annual reports. We will propose strain on the balance sheet, the income statement, and the statement of bills flows; ultimately, allowing us to refer and contrast net income statement and cash in flows statement. In conclusion, we will predict the three companies future trends by utilizing net income and cash flows. Accounting Terminology and its importance to Accounting Generally legitimate Accounting Principles (generally accepted accou nting principles)- The overriding accounting principles, standards, and procedures that companies constitute when compiling their financial statements. GAAP is a combination of dictatorial standards (set by policy boards) and the usually accepted ways of recording and reporting accounting information.

In order for financial statements to adequately serve their purpose (that is, is to imprimatur that the financial position of a firm is fairly and mighty presented to interested parties, GAAP is use to ensure that the statements are relevant, reliable, comparable, and consistent. When a statement is audited in concord to t hese principles, it bath be considered (in ! around cases) an accurate description of a companys financial health, its prospects, and its business objectives. Because GAAP is standardize and regulated, a companys financial well-being can be reliably compared to that of opposite companies, and its place in the attention be discerned. (GAAP, 2011) Contra-Asset Accounts- A contra summation account is an asset account where the balance...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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