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Kollasch Co. Zachary Martin,Capital6153,1459,255New Bal.2.New Bal.3.New Bal.4.New Bal.2.Chapter 1Starting a Proprietorship: Changes that Affect the Accounting Equation ' I S. Part Two—Identifying Accounting Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following Identifying Accounting Terms Identifying Accounting Concepts and Practices Analyzing How Transactions Change an Accounting Equation Analyzing How Transactions Change Owner's Equity in an Accounting Equation Total Perfect Score 22 Pts. 18 Pts. 10 Pts. 12 Pts. 62 Pts. Your Score Part One—ldentifying Accounting Terms Accounting 1 Chapter 22 Identifying Accounting Concepts and Practices for End-of-Fiscal-Period Work Accounting Concepts and Principles include Prudence, Going Concern, Money Measurement, Matching, Materiality, Relevance, Reliability, Substance Over Form, Timeliness, Neutrality, Faithful Representation, Completeness, Comparability, Consistency, Understandability, Accruals, Business Entity & Realization Principle. Certain fundamentals on which accounting is based on are known as accounting concepts or accounting principles. Some of them are as follows: 1. Entity concept 2.
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The need for generally accepted accounting principles arises from two reasons: 1) to be logical & consistent in recording the transaction 2) to conform to the established practices & procedures Accounting Principles, Assumptions, and Concepts. In Introduction to Financial Statements, you learned that the Financial Accounting Standards Board (FASB) is an independent, nonprofit organization that sets the standards for financial accounting and reporting, including generally accepted accounting principles (GAAP), for both public- and private-sector businesses in the United States. Public Accounting / Public Practice – composed of practitioners that render independent and expert financial services to the public. 2. Private Accounting / Commerce or Industry – assists management in planning and controlling the entity’s operations. 3. Government Accounting - accounting for government funds and interpreting the results The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.
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Part Two—Identifying Account Concepts and Practices Directions: Place a T for True or an F for False in the Answers column to show whether each of the following statements is true or false. 1.Accounting is the language of business. (p.
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Entity concept is a concept which explains to you that your business is different than … Business Entity Concept: Under this concept, it is assumed that the business unit is distinct and … Fundamental Accounting Concepts and Constraints. Here is a list of the four basic accounting concepts and constraints that make up the GAAP framework in the US. Business Entity Concept; Going Concern Concept; Materiality Concept; Industry Practices Constraint 1. Accounting Principles and Concepts are various. 2.
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Part one—identifying accounting concepts and practices
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