What is meant by "generally accepted accounting principles"?
Generally accepted accounting principles (GAAP) are a set of guidelines that are based on a conceptual framework. They represent accounting standards, rules, principles, and procedures that comprise authoritative practice for financial accounting. GAAP was created in response to the need to make it easier to use financial statements over time and across companies.
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The excess of current assets over current liabilities is referred to as working capital
a. True b. False Indicate whether the statement is true or false
As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company inventory was determined to be $61,500. The auditors for Mona Lisa suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: Inventory (1/1/16) $ 130,000 Purchases (2016) 760,000 Sales
(2016) 1,020,000 Sales returns (2016) 60,000 Gross profit ratio 25% of sales Using the gross profit method, what did the auditors estimate as the amount of the inventory that should have been on hand at December 31, 2016? A) $240,000 B) $170,000 C) $125,000 D) $ 61,500
Focus groups are used widely to predict actual sales accurately
Indicate whether the statement is true or false
Market segments that can be effectively reached and served are said to be ________
A) measurable B) accessible C) substantial D) actionable E) profitable