Basic Concepts of Accounting

1 Basic Concepts of Accounting Onesimus Strachan ACC/537 March 21, 2011 Dr. Agata Steenken 2 Basic Concepts of Accounting at that place are many parties wanting to know the fiscal bunk of businesses. To accomplish this, companies rely on method of accounting, the information system that identifies, records, and communicates the scotch events of an organization to interested users Kimmel, Weygandt & Kieso, 2007, p.7). To succeed in delivering a well accounting environment we explore governing standards known as Generally Accepted Accounting Principles (GAAP); examine effective accounting information, the forms of accounting and look at the various business structures reliant on the accounting environment. Hierarchical Sources of Accounting Standards According to Kieso, Weygandt and Warfield, interested parties have coinciding and conflicting need for information and from investors to managers the lookout is still to have company financial information presented fairly, clearly and completely. The accounting profession attempts this by developing standard statements and practices that leave alone for consistency of collecting, recording and reporting financial information.

These guidelines, commonly referred to as Generally Accepted Accounting Principles (GAAP) are universally accepted as authoritative accounting rules and practices. This rule-making group incorporates standards form several(prenominal) governing bodies beginning with the Security Exchange Commission (SEC), the monetary Accounting and Standards Board (FASB), the American Institute of Certified overt Accountants (AICPA) and the Accounting Principles Board (APB). These sources of guiding principles began with the SEC after the 1929 break down of the financial markets. Creation of the SEC by the federal judicature to protect the interest of investors by regulating companies that were publicly occupation was the start to standardized presentation of companys financial information. The SEC quickly realized the... If you want to get a full essay, order it on our website: Ordercustompaper.com

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