Intermediate Accounting 1 Final Exam Questions and Answers | Graded A+

financial reporting - process of providing this information to external users capital markets - as a composite of all investors and creditors, helps our economy allocate resources cash basis accounting - measurement of cash receipts and cash payments from transactions related to providing goods and services, difference is net operating cash flow, only accounts for the cash flow/inflow when it is happens accrual basis accounting - measurement of revenues and expenses, regardless of when cash is received or paid, difference is net income or net loss, ex unearned revenue GAAP (Generally Accepted Accounting Principles) - a set of both broad and specific guidelines that companies should follow when measuring and reporting the information in their financial statements and related notes conceptual framework - "accounting constitution" accounting constitution - provides underlying foundation for accounting standards, guide the selection of events to be accounted for, measurement of those events, means of summarizing and communicating them to interested parties