Answered: Briefly explain the following generally…

Briefly explain the following generally accepted accounting principles with your own words and examples. a) Conservatism Principle b) Consistency Principle

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 7MC: These are used by the FASB, and it is a set of concepts that guide financial reporting. A. Financial...

See similar textbooks

Related questions

Q: Briefly explain the following generally accepted accounting principles with your own words and…

A: The consistency principle states that once you decide on an accounting method or principle to use in…

Q: Ethics is the most fundamental principle of Accounting. Explain it.

A: Ethics implies the arrangement of rules that the association ought to follow. While in business,…

Q: Briefly discuss the difference between (A) a “rules-based" approach to accounting standard setting…

A: Rules-based accounting: Rules-based accounting is based on a set of detailed rules that the…

Q: Accounting equation remains intact under all circumstances. Justify thestatement with the help of an…

A: Accounting equation: Accounting equation represents the mathematical relationship between assets,…

Q: Explain in your own words what generally accepted accounting principles (GAAP) are.

A: GAAP are the rules , standard , guidelines and procedures according to which accounts are prepared.…

Q: Explain breifely about the theories of accounting regulation – public interest theory, capture…

A: The four theories of accounting regulation are: Public interest theory, Capture theory, Economic…

Q: What are the benefits of generally accepted accounting principles (GAAPs)?

A: GAAP stands for Generally Accepted Accounting Principles.

Q: Why and when the generally accepted accounting principles were established?

A: Generally accepted accounting principle- It contains the set of rules, regulations and criteria for…

Q: Evaluate the strengths and weaknesses of interpretive accounting theory

A: Interpretive Accounting theory:-Interpretive Accounting theory has evolved and made significant…

Q: Evaluate the attributes of full disclosure in financial reporting, including the accounting…

A: FULL DISCLOSURE PRINCIPLE - The full disclosure principle states that the information which is…

Q: Explain the differences between a positive theory of accounting and a normative theory of…

A: The question is based on the concept of Business Accounting.

Q: this multiple choice questions from ACCOUNTING PRINCIPLES I

A: Question 13 option D is correct income statement Depreciation appears on income statement.

Q: prudence concept a

A: Prudence concept is a fundamental accounting concept.

Q: Discuss the importance of accounting standards for the purpose of preparing financial reports.

A: Accounting Standard Accounting Theory

Q: From the following statements which one is not the correct classification of accounting theory

A: Accounting theory is the theory which is actually the set of guidelines, principles or in order…

Q: Discuss the assumptions underlying accounting measurement and explain their significance.

A: Accounting can be defined as the process of measuring the monetary business transaction for the…

Q: Which of the following is most closely linked to accounting conservatism? a. Lower-of-cost-or-market…

Q: Explain generally accepted accounting principles and define and apply several accounting principles.

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: Explain and applyunderlying accountingconcepts, assumptions,and principles

A: Accounting concepts and principles: Financial statements are prepared in accordance with the…

Q: n your own words, what does relevance mean to you? After tackling this topic, then research…

A: Relevance means the necessity of work at a specific point of time. Relevance means the work which we…

Q: nting in the United States follows Generally Accepted Accounting Principles (GAAP), which are based…

A: The Financial Accounting Standards Board issues a set of accounting principles, standards, and…

Q: What are the different assumptions of Accounting principles?

A: Accounting assumptions provide a fundamental base and structure to record business transactions.The…

Q: Examine the advantages and disadvantages of interpretative accounting theory

A: Introduction : Interpretive Accounting theory has developed and contributed significantly to our…

Q: Accounting in the United States follows Generally Accepted Accounting Principles (GAAP), which are…

A: Full form of GAAP is generally accepted accounting principles. This is the collection of commonly…

Q: DEFINE AND EXPLAIN ACCOUNTING THEORY

A: Accounting refers to the process of keeping records of financial events and transactions happening…

Q: What is a conceptual framework, and how does one create one? In financial accounting, why is a…

A: Conceptual Framework: A conceptual framework logically explains related goals and foundations;.bu1Z…

Q: Is accounting theory really necessary for the making of accounting rules?

A: Solution:- Is accounting theory really necessary for the making of accounting rules:- Accounting…

Q: Briefly explain the following generally accepted accounting principles with examples. a)…

A: a) Conservatism Principle DEFINATION: The accounting principle that only concerns about the…

Q: Explain how and why some changes in accounting principle are reportedprospectively.

A: Changes in accounting principle: A change in accounting principle is said to be a change in a…

Q: what criteria do accountants use to decide whether to use present or future values in accounting…

A: Present value is worth, of a future cash flow, as of today. Everyone has a different expectation…

Q: ccounting in the United States follows Generally Accepted Accounting Principles (GAAP), which are…

A: The Financial Accounting Standards Board issues a set of accounting principles, standards, and…

Q: General accounting principles consist of four basic principles, four assumptions, and two…

A: Full Disclosure Principle This principle states that every element, accounting records, standards…

Q: Make logical comparison between financial accounting with other fields of accounting ?

A: Accounting It is a process under which financial transactions are recorded ,stored, retrieving ,…

Q: Describe briefly the following characteristics of useful accounting information. Comparability…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: The accounting concept that requires financial information to be supported by independent, unbiased…

A: Accounting is a process of identifying, recording, classifying, summarising, analysing and…

Q: Briefly explain the following generally accepted accounting principles and give examples. a)…

A: General accepted accounting principles means those set of standards which is followed while…

Q: GAAP stands for: The answer is A. Generally Accepted Accounting Principles. B. Generally Accepted…

A: Introduction: GAAP: GAAP is a bunch of Rules and principles issued by FASB.

Q: Briefly explain the following generally accepted accounting principles with your own words and…

A: The rules and guidelines followed by company while maintaining and reporting financial data are said…

Q: What is GAAP, Generally Accepted Accounting Principles?

A: The Generally Accepted Accounting Principles (GAAP)is a set of rules used for helping…

Q: Indicate whether the following statements about the conceptual framework are true or false. If…

Q: Please answer the following question and read the discussion question rubric: What is the primary…

A: The primary objective of financial accounting: Financial accounting's primary goal is to accurately…

Q: Define and apply many accounting concepts as well as explain commonly accepted accounting…

A: Accounting fundamentals: These are the assumptions, ideas, and rules required to produce and present…

Question

Briefly explain the following generally accepted accounting principles with
your own words and examples.
a) Conservatism Principle
b) Consistency Principle

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

a) Conservatism Principle

VIEW

Consistency Principle

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is considered a constraint on useful information by Statement of Financial Accounting Concepts No. 8? a. benefits costs b. conservatism c. timeliness d. verifiability
The standards, procedures, and principles companies must follow when preparing their financial statements are known as 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
Which of the following is the principle that a business must report any business activities that could affect what is reported on the financial statements? A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
Briefly explain the following generally accepted accounting principles and give examples. a) Conservatism Principle b) Consistency Principle
Briefly explain the following generally accepted accounting principles with examples.a) Conservatism Principle b) Consistency Principle
Briefly explain the following generally accepted accounting principles withyour own words and examples.a) Conservatism Principle
Briefly explain the following generally accepted accounting principles withyour own words and examples. a) Consistency Principle
Between Principles- Based and Rules-Based Accounting Standards, which would you use and do you think that this is the right way to create accounting standards?