Question The American Financial Accounting Standards Board issued Standard 5, whichprovides for recognition and measurement in the financial statements of businessestablishments. What is required a detailed explanation of the accountingassumptions and principles in the financial statements?Explain the accounting foundations on which the accounting profession is based,and what are the differences between these foundations?

Introduction: The American financial accounting standard 5 is dealing among other matters, "the…

The American Financial Accounting Standards Board issued Standard 5, which provides for recognition and measurement in the financial statements of business establishments. What is required is a detailed explanation of the accounting assumptions and principles in the financial statements? Explain the accounting foundations on which the accounting profession is based, and what are the differences between these foundations?

The American Financial Accounting Standards Board issued Standard 5, which provides for recognition and measurement in the financial statements of business establishments. What is required is a detailed explanation of the accounting assumptions and principles in the financial statements? Explain the accounting foundations on which the accounting profession is based, and what are the differences between these foundations?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 6MC

See similar textbooks

Similar questions

The independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) in the United States is which of the following? A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
This is the independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. A. Financial Accounting Standards Board (FASB) B. generally accepted accounting principles (GAAP) C. Securities and Exchange Commission (SEC) D. conceptual framework
What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important?
Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by the FASB, which is a set of concepts that guide financial reporting B. generally accepted accounting principles (GAAP) ii. independent, nonprofit organization that sets financial accounting and reporting standards for both public- and private-sector businesses that use generally accepted accounting principles (GAAP) here in the United States C. Securities and Exchange Commission SEC) iii. standards, procedures, and principles companies must follow when preparing their financial statements D. conceptual framework iv. assumes a business will continue to operate in the foreseeable future E. going concern assumption v. independent federal agency protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements F. time period assumption vi. companies can present useful information in shorter time periods such as years, quarters, or months
How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?
What is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?
Accounting practices in the United States are governed by a set of accounting rules referred to as: The International Financial Reporting Standards (IFRS) The Financial Accounting Standards The Accounting Principles Generally Accepted Accounting Principles (GAAP)
The standards, procedures, and principles companies must follow when preparing their financial statements are known as which of the following? Conceptual framework Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) Generally Accepted Accounting Principles (GAAP)
What is the rationale behind the Financial Accounting Standards Board's classification of accounting as an information system?
Generally accepted accounting principles play an important role in financial reporting.a. What is meant by the phrase generally accepted accounting principles?b. What are the major sources of these principles?c. Is there a single comprehensive list of generally accepted accounting principles? Explain. d. What types of accounting reports are prepared in conformity with generally accepted account-ing principles?
Do the conceptual frameworks of the International Accounting Standards Board and the Financial Accounting Standards Board vary in terms of the function of financial reporting?