Solution Manual For Financial Statement Analysis,
bb bb bb bb bb bb
13th Edition
bb
By Charles H. Gibson, Verified Chapter's 1-13 | Complete
bb bb bb bb bb bb bb bb
, Chapter 1 b b Introduct
bbion to Financial Reporting
QUESTIONS
1-1.
b a.
The AICPA is an organization
b of CPAs that prior to
b
bb 1973 ac cepted
bb the primary
b responsibility for the
development
bb of generall y
b bb acceptedaccounting principles. Their bb
role
b was substantially re duced b bb in 1973 b when the
Financial
bb Accounting Standards Board was
bb established.
b
Their role wasfurther reduced
b with the
esta blishment
bb bb of the Public Company Accounting Oversight bb
Board w as bb established in 2002.
b. The Financial Accounting Standards Board replaced
bb the Acc ounting Principles
bb Board as theprimary rule-
b bb
making body for accounting standards. It is an
independent organization
bb bb and includes members other
bb than public acco
untants.
c. The SEC has the authority to determine generally
bb accepted a ccounting
bb principles and
b to regulate the
b
bb accounting profession. The
b bb SEC has b elected to leave
bb much of
b the determinationof generally accepted
accounting
bb principles to the private sector.
The Financial Accounting Standards Board has played
bb the major
bb role in establishing accounting standards since
bb 1973. R
egulation of the accounting profession was substantially
, bb turned over bb to the Public Company Accounting Oversight
bb Board in 2 b b 002.
1-
2. Consistency is obtained through the application of the same a ccounting
bb bb bb bb bb bb bb bb bb bb
bb principle from period to period. A change in principl
e requires statement disclosure.
1-
3. The b b b b concept b b b b of b b b b historical b b b b cost b b b b determines b b b b the b b b b balance b b
b b sheet valuatio n bb bb b b of b b land. b b The b b realization b b concept b b requires
b b that b b a transaction
bb b b b b needs to bb b b b b occur b b b b for b b b b the b b b b profit
b b b b to b b b b be b b b b recognized.
1- 4. a. Entity e. Historical cost
b. Realization f. Historical cost
https://www.stuvia.com/user/PageTurners
, c. Materiality g. Disclosure
bb bb bb bb bb bb
13th Edition
bb
By Charles H. Gibson, Verified Chapter's 1-13 | Complete
bb bb bb bb bb bb bb bb
, Chapter 1 b b Introduct
bbion to Financial Reporting
QUESTIONS
1-1.
b a.
The AICPA is an organization
b of CPAs that prior to
b
bb 1973 ac cepted
bb the primary
b responsibility for the
development
bb of generall y
b bb acceptedaccounting principles. Their bb
role
b was substantially re duced b bb in 1973 b when the
Financial
bb Accounting Standards Board was
bb established.
b
Their role wasfurther reduced
b with the
esta blishment
bb bb of the Public Company Accounting Oversight bb
Board w as bb established in 2002.
b. The Financial Accounting Standards Board replaced
bb the Acc ounting Principles
bb Board as theprimary rule-
b bb
making body for accounting standards. It is an
independent organization
bb bb and includes members other
bb than public acco
untants.
c. The SEC has the authority to determine generally
bb accepted a ccounting
bb principles and
b to regulate the
b
bb accounting profession. The
b bb SEC has b elected to leave
bb much of
b the determinationof generally accepted
accounting
bb principles to the private sector.
The Financial Accounting Standards Board has played
bb the major
bb role in establishing accounting standards since
bb 1973. R
egulation of the accounting profession was substantially
, bb turned over bb to the Public Company Accounting Oversight
bb Board in 2 b b 002.
1-
2. Consistency is obtained through the application of the same a ccounting
bb bb bb bb bb bb bb bb bb bb
bb principle from period to period. A change in principl
e requires statement disclosure.
1-
3. The b b b b concept b b b b of b b b b historical b b b b cost b b b b determines b b b b the b b b b balance b b
b b sheet valuatio n bb bb b b of b b land. b b The b b realization b b concept b b requires
b b that b b a transaction
bb b b b b needs to bb b b b b occur b b b b for b b b b the b b b b profit
b b b b to b b b b be b b b b recognized.
1- 4. a. Entity e. Historical cost
b. Realization f. Historical cost
https://www.stuvia.com/user/PageTurners
, c. Materiality g. Disclosure
