What is GAAP? GAAP are rules of action derived from experience and practice, proving useful and becoming Generally Accepted Accounting Principles. Generally Accepted Accounting Principles may be defined as those rules of action or conduct in accounting practice. When they prove useful, they become accepted principles of accounting. GAPP’s complete form is Generally Accepted Accounting…
5 accounting principles are; (1) revenue recognition principle, (2) historical cost principle, (3) matching principle, (4) full disclosure principle, and (5) objectivity principle.
4 accounting assumptions are; (1) business entity assumption, (2) money measurement assumption, (3) going concern assumption and (4) accounting period assumption.
Accounting Equation indicates that for every debit there must be an equal credit. assets, liabilities and owners’ equity are the three components of it. Accounting equation suggests that for every debit there must be a credit. Accounting is a way of getting information about the transactions and events within the business in reports that are…