BMAL-590 Week 2 Accounting/Basic Accounting Concept section 3 correctly answered

BMAL-590 Week 2 Accounting/Basic
Accounting Concept section 3

Basic financial statements include: - correct answer ✔✔1. income statement

2. retained earnings statement

3. balance sheet

4. statement of cash flows



they are all interconnected



articulation of financial statements: - correct answer ✔✔the way accountants refer to the connection
between financial statements



basic elements of a financial accounting system: - correct answer ✔✔(1) standards for determining what,
when, and the amount that should be recorded for economic events,

(2) a framework for preparing financial statements, (3) controls to determine whether errors may have
arisen in the recording process.



GAAP - correct answer ✔✔Generally Accepted Accounting Principles



IFRS - correct answer ✔✔International Financial Reporting Standards



Generally Accepted Accounting Principles - correct answer ✔✔a set of accounting standards that is used
in the preparation of financial statements



International Financial Reporting Standards - correct answer ✔✔are used by companies domiciled in
many countries.



In recent years standard setting bodies have made progress to converge GAAP and IFRS standards.