Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter D, Problem 5DQ
To determine
Examine the differences between (A) rules-based approach, and (B) principles-based approach, in setting the accounting standards.
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Compare and contrast the Rules Based as opposed to the Principles Based Approachto developing accounting standards.
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?
What do you understand as the meaning of the term Generally Accepted Accounting Principles (GAAP)? Discussion should involve a description of its component parts (bodies of influence) in defining the role of the accountant.
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- 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 frameworkarrow_forwardWhich 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. verifiabilityarrow_forwardBriefly explain the following generally accepted accounting principles withyour own words and examples. a) Consistency Principlearrow_forward
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