which of the following is in accordance with generally accepted accounting principles course hero

What is the difference between revenue recognition and accrual basis accounting?

Aug 12, 2019 · The modified cash basis is not allowed under Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS), which means that a business using this basis will need to alter the recordation of those elements of its transactions that were recorded under the cash basis.

What is the best book for financial accounting?

Question 1 6 out of 6 points Correct Which of the following is in accordance with generally accepted accounting principles? Selected Answer: Accrual-basis accounting Question 2 6 out of 6 points Correct The revenue recognition principle dictates that revenue should be recognized in the accounting records Selected Answer: when the performance obligation is satisfied.

What type of account does the adjusted trial balance list?

HW3 1.Which of the following is in accordance with generally accepted accounting principles? A) Accrual-basis accounting B) Cash-basis accounting C) Both accrual-basis and cash-basis accounting D) Neither accrual-basis nor cash-basis accounting 2. Adjusting entries are required A) yearly. B) quarterly. C) monthly. D) every time financial statements are prepared. […]

Which of the following are in accordance with generally accepted accounting principles?

Accrual basis of accountingThe correct option is B. Accrual basis of accounting is in accordance with Generally Accepted Accounting Principles (GAAP)....

What are the 5 generally accepted accounting principles?

5 principles of accounting are;Revenue Recognition Principle,Historical Cost Principle,Matching Principle,Full Disclosure Principle, and.Objectivity Principle.

What is generally accepted accounting standard?

Generally accepted accounting principles (GAAP) refer to a common set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board (FASB). Public companies in the U.S. must follow GAAP when their accountants compile their financial statements.

What does in accordance with GAAP mean?

generally accepted accounting principlesExternal audits focus on whether and how well a business's financial statements adhere to generally accepted accounting principles, or GAAP. The objective of GAAP is to standardize and regulate accounting procedures and methods, ultimately providing consistency in annual financial reporting.

What are generally accepted accounting principles quizlet?

Generally Accepted Accounting Principles are principles, rules, and standards to be followed in preparing and reporting financial statements which are the primary source of information in financial analysis.

What are the 4 accounting principles?

The four basic principles in generally accepted accounting principles are: cost, revenue, matching and disclosure.

Why and when the Generally Accepted Accounting Principles were established?

Generally Accepted Accounting Principles were eventually established primarily as a response to the Stock Market Crash of 1929 and the subsequent Great Depression, which were believed to be at least partially caused by less than forthright financial reporting practices by some publicly-traded companies.

What are accounting principles in India?

The important concepts have been listed as below: Business entity; • Money measurement; • Going concern; • Accounting period; • Cost • Dual aspect (or Duality); • Revenue recognition (Realisation); • Matching; • Full disclosure; • Consistency; • Conservatism (Prudence); • Materiality; • Objectivity.

How does accounting standards differ from accounting principles?

The main difference between Accounting Concepts and Accounting Principles is; Accounting concepts are the assumptions, guidelines, and postulates with which the accounting data is recorded whereas Accounting principles are the rules to be followed while reporting financial data.

What term is commonly used under GAAP in reference to the statement of financial position?

The statement of financial position is another term for the balance sheet.Jan 11, 2022

How do you ensure GAAP compliance?

One critical step to ensuring GAAP compliance is undergoing the external audit process. This step involves an outside firm examining and evaluating the financial statements of a business, reviewing the books to verify that all measurements and presentations were made following GAAP's procedures and guidelines.

What are the principle sources of Indian GAAP?

Explanation: In India, financial statements are prepared on the basis of accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the law laid down in the respective applicable acts (for example, Schedule III to Companies Act, 2013 should be compulsorily followed by all companies).Nov 7, 2020