What are Generally Accepted Accounting Principles (GAAP)? Which entity is currently responsible for determining GAAP? What will be an ideal response ANSWER Generally Accepted Accounting Principles are the guidelines for accounting information, currently formulated by the Financial Accounting Standards Board (FASB). GAAP is the main U.S. accounting rule book.
GAAP refer to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to ________. A) Globally Accepted and Accurate Policies B) Global Accommodation Accounting Principles C) Generally Accredited Accounting Policies D) Generally Accepted Accounting Principles ANSWER D
As per the economic entity assumption, an organization and its owners should be seen as the same entity. Indicate whether the statement is true or false ANSWER FALSE
In a sole proprietorship, the owner is personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER TRUE
The most that the owner of a sole proprietorship can lose, as a result of business debts or lawsuits, is the amount he/she has invested in the business. Indicate whether the statement is true or false ANSWER FALSE
Members of a limited-liability company (LLC) are not personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER TRUE
In a limited-liability company (LLC), the members are personally liable for the debts of the business. Indicate whether the statement is true or false ANSWER FALSE
A business can be organized as a sole proprietorship, partnership, corporation, or limited-liability company (LLC). Indicate whether the statement is true or false ANSWER TRUE
In a corporation, the board of directors is elected by the chairperson of the company. Indicate whether the statement is true or false ANSWER FALSE
For each user of accounting information, identify if the user would use financial accounting (FA ) or managerial accounting (MA ) User of Accounting Information FA or MA Business manager Creditor Stockholder Human resources director Internal Revenue Service What will be an ideal response ANSWER User of Accounting Information FA or MA Business manager MA […]
