Solution Manual For Financial Statement Analysis,
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13th Edition
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By Charles H. Gibson, Verified Chapter's 1 - 13 | Complete
muu muu muu muu muu muu muu muu muu muu
, Chapterm 1mIntroducti
onm tom FinancialmReporting
QUESTIONS
1- 1. a.
Them AICPAm ism an m orga
nization m of m CPAsm thatm priorm tom 1973macceptedm them primarym r
esponsibilitym form them developmentm of mgenerallym acceptedm acco
untingm principles.m Theirm rolem wasmsubstantiallym reducedm inm 1973
m when m them Financialm Accounting mStandardsm Boardm wasm establ
ished.
Theirm rolem wasm furthermre
ducedm with m them establishmentm of m them Publicm CompanymAccou
ntingm Oversightm Boardm wasm establishedm in m 2002.
b. Them Financial m Accountingm Standardsm Boardm replacedm them A
ccountingm Principlesm Boardm asm them primarym rule-
makingmbodym form accountingm standards.m Itm ism an m indepe
ndentmorganizationm andm includesm membersm otherm than m p
ublicmaccountants.
c. Them SECm hasm them authoritym tom determinem generallym accepted
maccounting m principlesm andm tom regulate m them accounting mprofes
sion.m Them SEC m hasm electedm tom leavem muchm ofm themdetermin
ation m of m generallym acceptedm accountingm principlesm to
them privatem sector.
Them Financial m Accountingm Standardsm Boardmhasm
playedm them majorm rolem in m establishingm accountingm standardsmsinc
em 1973.
Regulation m of m them accountingm professionm wasmsub
stantiallym turnedm overm tom them Publicm Companym AccountingmOvers
ightm Boardm in m 2002.
1-m 2.
Consistencym is
m obtained m throughm them application m ofm them samemaccounting m
principlem fromm periodm tom period.
Am changem inmpr
inciplem requiresm statementm disclosure.
1-
m3.m m Them conceptm of m historical m costm determinesm them balancem sheetm
valuation m of m land.m Them realizationm conceptm requiresm thatm am transactionm ne
edsm tomoccurm form them profitm tom bem recognized.
1-m 4. a. Entity e. Historical m cost
b. Realization f. Historical m cost
,c. Materiality g. Disclosure
d. Conservatism
, 1-m 5. Entitym concept
m uu m uu m uu m uu m uu
13th Edition
m
uu
By Charles H. Gibson, Verified Chapter's 1 - 13 | Complete
muu muu muu muu muu muu muu muu muu muu
, Chapterm 1mIntroducti
onm tom FinancialmReporting
QUESTIONS
1- 1. a.
Them AICPAm ism an m orga
nization m of m CPAsm thatm priorm tom 1973macceptedm them primarym r
esponsibilitym form them developmentm of mgenerallym acceptedm acco
untingm principles.m Theirm rolem wasmsubstantiallym reducedm inm 1973
m when m them Financialm Accounting mStandardsm Boardm wasm establ
ished.
Theirm rolem wasm furthermre
ducedm with m them establishmentm of m them Publicm CompanymAccou
ntingm Oversightm Boardm wasm establishedm in m 2002.
b. Them Financial m Accountingm Standardsm Boardm replacedm them A
ccountingm Principlesm Boardm asm them primarym rule-
makingmbodym form accountingm standards.m Itm ism an m indepe
ndentmorganizationm andm includesm membersm otherm than m p
ublicmaccountants.
c. Them SECm hasm them authoritym tom determinem generallym accepted
maccounting m principlesm andm tom regulate m them accounting mprofes
sion.m Them SEC m hasm electedm tom leavem muchm ofm themdetermin
ation m of m generallym acceptedm accountingm principlesm to
them privatem sector.
Them Financial m Accountingm Standardsm Boardmhasm
playedm them majorm rolem in m establishingm accountingm standardsmsinc
em 1973.
Regulation m of m them accountingm professionm wasmsub
stantiallym turnedm overm tom them Publicm Companym AccountingmOvers
ightm Boardm in m 2002.
1-m 2.
Consistencym is
m obtained m throughm them application m ofm them samemaccounting m
principlem fromm periodm tom period.
Am changem inmpr
inciplem requiresm statementm disclosure.
1-
m3.m m Them conceptm of m historical m costm determinesm them balancem sheetm
valuation m of m land.m Them realizationm conceptm requiresm thatm am transactionm ne
edsm tomoccurm form them profitm tom bem recognized.
1-m 4. a. Entity e. Historical m cost
b. Realization f. Historical m cost
,c. Materiality g. Disclosure
d. Conservatism
, 1-m 5. Entitym concept
