Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Accounting
GAPP, or "generally accepted accounting principles," has very specific meanings for the accounting profession. Like many other fields, these are best practice principles, and they both govern the standards of accountants and guide in licensing. They were designed so that there was a more even playing field, level of transparency, and trust in the accounting industry (see, for example, www.fasab.gov/accepted.html). While not always absolutes, these types of guidelines are a template for the way in which CPAs and accounting processionals work through documents, report figures, and are responsible for the manner in which information is disclosed (for more, review the site AICPA, at www.aicpa.org). There are two different ways to look at accounting data, according to GAPP: accrual or cash.
Cash Method- Cash accounting (receipts and disbursements) is a way of recording revenue when cash is received and recording expenses when they are paid. There are some advantages in using this method because payment of expenses may be accelerated before year end, which maximizes deductions and billings can be postponed;...
The fundamental premise of cash accounting is that the event is recorded when it happens -- money received, money spent and technically should reflect a snapshot of the company at that very moment in time.
Accrual Method- The accrual method records incidents when they are earned or when expenses are incurred. It is a way to measure the performance and position of any organization by focusing of the timing of the event rather than when cash is used to pay or received. It uses a matching principle that matches revenues to expenses so that cash inflow/outlow can be combined at the present time with future in/out to give a more complete picture of the organization's actual fiscal health. Thus, for many it is considered to be the standard accounting practice, the exception being extremely small companies. This is because the accrual is more than just a snapshot of cash, it is a picture of the organization (Accrual Accounting, 2012).
Analysis -- The decision on the accounting method is important because it may…
REFERENCES
Accrual Accounting. (2012). Investopedia. Retrieved from:
http://www.investopedia.com/terms/a/accrualaccounting.asp#axzz1vegj0tXy
Stickney, C.P., et.al. (2010). Financial Accounting: An Introduction. Mason, OH: South Western
Cenage.
Unethical Accounting Behavior Our hypothetical situation is a company that sells housing units in a resort community. We will call the company, Jones, Inc. Jones Inc. uses techniques to sell as many units as possible in a given fiscal period, financing almost all, regardless of whether the client is credit worthy or not. The sales force receives a bonus from the real estate conglomerate for selling a certain number of units,
"Failure of any district to budget funds to meet statutory requirements is a very serious matter and will result in the executive county superintendent rejection of the budget. The district will be advised of any lack of budget approval with specific recommendations on necessary corrective revisions." (New Jersey Department of Education 2013, P 14). 3. Key Budget Terminology There are numerous terminologies with regard to the school district budget. The most important
As all these challenges pervaded not only ChoicePoint but all the companies comprising the industry, privacy advocates began to dissect the processes, systems and approaches that data providers were using to collect, analyze and sell information. What they found quickly became the foundation for congressional attention and focus on imposing heavy regulations on an industry that was suffering from a lack of process integration and no oversight or governance
GAAP Newsletter Dear Managers: In the 21st century, particularly after a combination of the Global Recession and issues surrounding companies like Enron and Arthur Anderson, there has been a new paradigm about accounting in the media, for stakeholders, governments, and professionals alike. There are a number of ways to accomplish this new paradigm, which revolves around trust in reporting numbers, the use of numbers in particular financial documents, and the manner in
Sarabanes-Oxley Act Standard to most businesses is the idea that it is management's only responsibility in an organization to generate profits -- the best possible fiscal return for stakeholders. This template argues that the fiscal responsibility of the business is paramount, but that managers may not be the right level to handle a morally suspect global project. Additionally, focusing too farm on moral issues and too little on profit (Savage and
Management Account in the Public Sector and Management Accounting in the Private Sector: A Comparative Review The late 20th and early 21st centuries have brought increasing change to almost every country in the world, Australia included. Globalism describes, in fact, the increasing unification of the world through economic means (reduction of trade barriers, support of international trade, and mitigation of export and import quotas). They goal for globalization is to increase