This website uses cookies to ensure you have the best experience. Learn more

Basic Accounting Concepts And Business Structures

638 words - 3 pages

Basic Accounting Concepts and Business Structures
Chris Walters
ACC 537
May 9, 2011
James T Neuner

Basic Accounting Concepts and Business Structures
Sources of GAAP and Hierarchy

The main sources of GAAP fall into four main categories; A, B, C, and D, with category A as the most authoritative, then B, C, and the least authoritative being D. Category A includes FASB Standards, Interpretations, and Staff Positions, APB Opinions, and AICPA Accounting Research Bulletin
Category B contains FASB Technical Bulletins, which are no longer issued, AICPA Industry Audit and Accounting Guidelines, and AICPA Statements of Position.
Category C incompasses FASB Emerging Issues Task Force and ...view middle of the document...

The Differences Between Accrual and Cash Basis Accounting
Accrual basis accounting is used to record transactions in the period they occur; revenue when earned and expense when incurred. It uses the principle of revenue recognition and the matching principle where revenue matches expense. Accrual basis accounting allows for smoother financial statements with less peaks and valleys since it is not dependent upon when cash is received or spent.
When cash basis accounting is used, cash is recorded when it is received, and expenses are recorded when a bill is paid. Revenue for a specific event can be recorded during one period and the corresponding expense recorded in a different period due to the day each is received, which can lead to manipulation of a financial statement.
Of the two forms of accounting, cash basis is not allowed by GAAP due to the violation of revenue recognition and matching principle. However, because many small businesses rely upon cash flow, cash basis is very popular.
Types of Business Structures
The four main categories of business structures are: sole proprietor, partnership, limited liability...

Other Papers Like Basic Accounting Concepts And Business Structures

Explaning Accounting Concepts and Business Structure

722 words - 3 pages Explaining Basic Accounting Concepts and Business Structures ACC/537 Dec, 5, 2011 Explaining Basic Accounting Concepts and Business Structures The purpose of the paper is to explain basic accounting concepts and business structures. This paper covers four topics, which include the following: 1. Identify and describe the sources of generally accepted accounting principles (GAAP). 2. Describe effective accounting information using

Business Concepts and Concepts Essay

1101 words - 5 pages Business Cycles and Concepts Sabrina Negron American Intercontinental University Online Abstract An employee of the World Bank has been asked to research unemployment concerns in Chile and to write a report of his/her findings. The employee has been asked to research data sets for unemployment and state the relationships between unemployment and Chile’s economy. The employee must answer what trends he/she finds in the data sets and to

Accounting Concepts and Conventions

1205 words - 5 pages Basic Accounting Concepts The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting and are broad working rules for all accounting activities and developed by the accounting profession. The important concepts have been listed as below: • Business entity; • Money measurement; • Going concern; • Accounting period; • Cost • Dual aspect (or Duality

Business Structures: Advantages and Disadvantages

795 words - 4 pages Business Structures: Advantages and Disadvantages FIN/571 09/23/13 Kenneth Baker Introduction Starting a business can be challenging for individuals. That individual will have to decide which business structure will be right for their business and develop a solid business plan from that structure. There are many business structures available to new business owners, there is sole proprietorship, partnership, limited liability company and

Chapter 2 Managerial Accounting and Cost Concepts

4862 words - 20 pages Chapter 2 Managerial Accounting and Cost Concepts Solutions to Questions 2-1 Managers carry out three major activities in an organization: planning, directing and motivating, and controlling. Planning involves establishing a basic strategy, selecting a course of action, and specifying how the action will be implemented. Directing and motivating involves mobilizing people to carry out plans and run routine operations. Controlling

Behavior Therapy: Basic Concepts, Assessment Methods, And Applications

2919 words - 12 pages Behavior Therapy: Basic Concepts, Assessment Methods, and Applications. Different kinds of psychotherapies have existed throughout history, and have always been rooted in philosophical views of human nature (Wachtel P., 1997). Specifically, behavior therapy intents to help individuals overcome difficulties in nearly any aspect of human experience (Thorpe G. & Olson S., 1990). The techniques of behavior therapy have been applied to education

Business Finance and Accounting

806 words - 4 pages the company. Net working capital is going give investors an idea of how effective XYZ Construction is with managing its capital and debts. Reference Northcentral University (Eds.). (2010). SKS7000: Executive concepts in business strategy [VitalSource e-book]. Boston, MA: Pearson Learning Solutions.

Business Research Terms and Concepts Part 2

740 words - 3 pages Understanding Business Research Terms and Concepts: Part 3 Determine which level of measurement— nominal, ordinal, interval, or ratio—is used in the following examples. • The Association of Accountants is conducting a survey to determine the ranking of the top 100 accounting firms in the world.  Ordinal • How many years did it take you to earn your college degree?  Ratio • On a questionnaire which asks for gender, males are

Business Ethics Ethical Concepts And Cases 3rd.Ed

930 words - 4 pages Name: Jessie James Tan Course: BS-IM Title: Business Ethics Ethical Concepts and Cases 3rd.ed. Author: Manuel G. Velasquez Book No.: HF5387V441993 IT-ETHICS (Book Review8) Chapter5 (Ethics and the Environment) Quotation: “As the earth in a short few decades becomes twice as crowded with human beings as it is now, and as human societies are confronted with dwindling resources in the midst of mounting accumulations of wastes

Understanding Business Research Terms and Concepts: Part 1

741 words - 3 pages Understanding Business Research Terms and Concepts: Part 1 RES/351 April 13, 2015 The methodology used in a business study depends on the type of business research being conducted. Business researchers utilize numerous approaches to obtain information and decipher data. Two popular approaches used in business research are the qualitative research approach and the quantitative research approach. Both of these approaches to business research

Understanding Business Research Terms and Concepts: Part 3

750 words - 3 pages Understanding Business Research Terms and Concepts: Part 3 Determine which level of measurement— nominal, ordinal, interval, or ratio—is used in the following examples. • The Association of Accountants is conducting a survey to determine the ranking of the top 100 accounting firms in the world. Ordinal • How many years did it take you to earn your college degree? Ratio • On a questionnaire which asks for gender, males

Related Essays

Explaining Basic Accounting Concepts And Business Structures

1282 words - 6 pages . The person who purchased this car improves the positioning of a person in the society. Italian suits satisfy the needs of a large number of Americans. The suits have a distinctive style and add to the personality of the people who wear them. The suits are useful for business executives and will make anyone who wears them look fashionable. Wearing an Italian suit makes a fashion statement for the wearer. The last product mentioned is the

Outline For Basic Accounting Concepts And Business Structures

701 words - 3 pages Basic Accounting Concepts and Business Structures Topic 1 Four organizations are involved in the production of accounting standard: Securities and Exchange Commission (SEC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), and Government Accounting Standards Board (GASB). SEC The SEC is a federal organization that helps develop standards for financial information presented to

Basic Accounting Concepts Essay

1043 words - 5 pages Explaining Basic Accounting Concepts and Business Structures Explaining Basic Accounting Concepts and Business Structures Good information is the basis of accounting. Development in accounting practices has led to valuable information from the standardization boards for accounting principles. Different types of companies use these standards to keep financial records for their businesses. Four sources of generally accepted accounting

Basic Business Structures Essay

702 words - 3 pages Basic Accounting Standards and Business Structures Whereas there is a need for accounting and financial professionals in the day-to-day operation of businesses to preserve their financial health, there is also a need by individuals. Whether it is the manager of an organization or individuals at home, who depend on professionals, it is necessary to have at a minimum a basic knowledge Accounting and financial concepts. Sources for General