GAAP Accounting

What is GAAP?

• Generally accepted accounting principles are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting

• GAAP is something that U.S. law requires businesses that release financial statements to the public and companies that are publicly traded on stock exchanges and indices to follow

• The thing in between my 2 front teeth

• 2 of these answers are correct!

Which of the following are part of the 10 key concepts of GAAP?

• Principle of regularity: GAAP-compliant

  accountants strictly adhere to established rules and regulations.

• Principle of consistency: Consistent

  standards are applied throughout the financial reporting process.

• Principle of continuity: Asset

  valuations assume the organization’s operations will continue.

• All of the above

What are the benefits of GAAP?

• Makes the financial reporting process transparent and standardizes assumptions, terminology, definitions, and methods. External parties can easily compare financial statements issued by GAAP-compliant entities and safely assume consistency, which allows for quick and accurate cross-company comparisons

• It is a quicker, more efficient process than IFRS

• It doesn't cost the company as much money to process accounting this way versus other accounting principles

Who came up with GAAP?

• A few independent boards serve as authorities on these principles, continually updating them to accommodate changing business practices and evolving organizations.

• Donald Trump

• The Big 4 Accounting Firms

• Jennifer Voyer

Who is your favorite co-worker?

• Jennifer Voyer

• Jennifer Voyer

• Jennifer Voyer

• Jennifer Voyer