Accounting Fundamentals (U.S. GAAP Standard)
1. Introduction to U.S. GAAP:
Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United
States. They ensure consistency, transparency, and comparability of financial statements.
2. Key Principles of GAAP:
- Principle of Regularity
- Principle of Consistency
- Principle of Sincerity
- Principle of Permanence of Methods
- Principle of Non-Compensation
- Principle of Prudence
- Principle of Continuity
- Principle of Periodicity
- Principle of Full Disclosure
3. Financial Statements under GAAP:
- Income Statement
- Balance Sheet
- Statement of Cash Flows
- Statement of Shareholders' Equity
4. Basic Accounting Equation:
Assets = Liabilities + Equity
Example:
1. Introduction to U.S. GAAP:
Generally Accepted Accounting Principles (GAAP) are the accounting standards used in the United
States. They ensure consistency, transparency, and comparability of financial statements.
2. Key Principles of GAAP:
- Principle of Regularity
- Principle of Consistency
- Principle of Sincerity
- Principle of Permanence of Methods
- Principle of Non-Compensation
- Principle of Prudence
- Principle of Continuity
- Principle of Periodicity
- Principle of Full Disclosure
3. Financial Statements under GAAP:
- Income Statement
- Balance Sheet
- Statement of Cash Flows
- Statement of Shareholders' Equity
4. Basic Accounting Equation:
Assets = Liabilities + Equity
Example:
