Explain what is meant by generally accepted accounting

Question

Explain what is meant by generally accepted accounting principles

Identify and describe the steps in the accounting process

Answer 1

1. the so-kalled rules yer spozed tu werk bi.

In praktis it is lisens tu steel.

Answer 2

GAAP are the rules that determine the appropriate way to account for any transaction.

Answer 3

Accountants use generally accepted accounting principles (GAAP) to guide them in recording and reporting financial information. GAAP comprises a broad set of principles that have been developed by the accounting profession and the Securities and Exchange Commission (SEC). Two laws, the Securities Act of 1933 and the Securities Exchange Act of 1934, give the SEC authority to establish reporting and disclosure requirements. However, the SEC usually operates in an oversight capacity, allowing the FASB and the Governmental Accounting Standards Board (GASB) to establish these requirements.

The current set of principles that accountants use rests upon some underlying assumptions. The basic assumptions and principles presented below are considered GAAP and apply to most financial statements. In addition to these concepts, there are other, more technical standards accountants must follow when preparing financial statements. Some of these are discussed later in this book, but other are left for more advanced study.

Pls click on the link for the principles and assumptions.

Steps in the accounting process:

1.  Analyze and journalize transactions.

2.  Post the journal entries to the general ledger accounts.

3.  Prepare a trial balance.

4.  Journalize and post the adjusting entries.

5.  Prepare an adjusted trial balance.

6.  Prepare financial statements.

7.  Journalize and post the closing entries.

8.  Prepare a post-closing trial balance.

Answer 4

Pal, read your textbook! Its all there!