Intermediate Accounting, I (Exam 1) Chapters 1-5 Questions and answers with Complete Solutions | 100% Pass

objective of financial reporting - provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors general-purpose financial statements - provide financial reporting information to a wide variety of users accrual basis accounting - ensures that a company records events that change its financial statements in the periods in which it receives or pays cash generally accepted accounting principles (GAAP) - common set of accounting standards and procedures: Securities and Exchange Commission (SEC) American Institute of Certified Public Accountants (AICPA) Financial Accounting Standards Board (FASB) Financial Accounting Standards Board - establish and improve standards of financial accounting and reporting for the guidance and education of the public which includes issuers, auditors, and users of financial informationAccounting Standards Updates - These updates amend the Accounting Standards Codification, which represents the source of authoritative accounting standards