Accepted Accounting Principles
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The paper provides an overview of the generally accepted accounting principles (GAAP) and discusses the four main principles involved. The paper details the cost principle, the revenue principle, the matching principle and the disclosure principle and shows how all companies that adhere to the GAAP principles easily maintain their credibility and reliability with creditors and stockholders alike.
From the Paper:"GAAP rules are used in preparation, presentation and reporting financial statements for quite a wide continuum of business units which includes private companies, public companies, NGOs, the government etc and GAAP will generally encompass accounting structure, laws and generally agreed standards.
"Just like the common law structures in other countries in the world, the US government doesn't directly stipulate the accounting principles and standards since the private sector is always presumed to be able to regulate itself with the knowledge and sufficient resources it has.
"There are however some bodies formed to oversee and coordinate the GAAP like the Securities and Exchange Commission (SEC) which ensure that financial reports by public companies follows the GAAP; Financial Accounting Standards Board (FASB) which is the top most organ concerned with formulation of GAAP for private companies, public companies and nonprofit organizations; Governmental Accounting Standards Board (GASP) which oversees the local government and the state governments and it operates under significantly different principles and assumptions from the standard private sector principles or GAAP; Federal Accounting Standards Advisory Board (FASAB) which regulates the financial reports from the federal government."
Sample of Sources Used:
- All Business (2010). What Are Generally Accepted Accounting Principles? Retrieved June 19, 2010 from http://www.allbusiness.com/accounting/methods-standards-generally-accepted-accounting/1261-1.html
- GAAP Concepts, (2008). Learning outcomes and Assessment Standards. http://www.learn.co.za/LC/content/grade10/ACCOUNTS/LC%20G10%20ACC%20LWB%2011_Lesson20.pdf?9062ffa906a3adea3f500f5a7083ca92=d2882672368de91ca589fc6d3618abf9
- Robert W & Judith J., (2004). Management accounting for health care organizations: tools and techniques for Decision Support. Retrieved June 18, 2010 from http://books.google.co.ke/books?id=5SditnEKAU4C&pg=PA413&lpg=PA413&dq=Revenue+principle+of+accounting+and+healthcare&source=bl&ots=S5_tfMqPrU&sig=Svv5bBOz5shlU0rqM9enyEzfTMw&hl=en&ei=bZMeTKXKH6f-0gTdwJSjDQ&sa=X&oi=book_result&ct=result&resnum=2&ved=0CB4Q6AEwAQ#v=onepage&q&f=false
- Steven A. & David M., (2006). Accounting fundamentals for health care management. Sudbury: Jones and Bartlett. Retrieved June 18, 2010 from http://books.google.co.ke/books?id=wKfUAfnjPmcC&pg=PA9&lpg=PA9&dq=THIS+IS+RELATED+TO+ACCOUNTING+FUNDAMENTAL+OF+THE+HEALTH+CARE+FINANCIALS.&source=bl&ots=f_WD057ca7&sig=Gu71xr6CU64l8ohbdvqVE-efs8E&hl=en&ei=GJkfTJKFGYv80wS-qfGuDQ&sa=X&oi=book_result&ct=result&resnum=6&ved=0CDAQ6AEwBQ#v=onepage&q&f=false
Cite this Term Paper:
Accepted Accounting Principles (2013, March 15) Retrieved February 20, 2020, from https://www.academon.com/term-paper/accepted-accounting-principles-152538/
"Accepted Accounting Principles" 15 March 2013. Web. 20 February. 2020. <https://www.academon.com/term-paper/accepted-accounting-principles-152538/>