Financial Accounting Basics

Generally Accepted Accounting Principles (GAAP) = Includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements International Financial Reporting Standards (IFRS) = Issued by the International Accounting Standards Board (IASB)

Stockholders, suppliers, banks, employees = Examples of people interested in receiving financial accounting information for decision making purposes Government agencies, business owners = Interested in receiving financial accounting information for decision making purposes

Financial accountancy = Branch of accounting concerned with the summary, analysis and reporting of financial transactions related to a business Generally Accepted Accounting Principles (GAAP) = Standard framework of guidelines for financial accounting used in any given jurisdiction International Financial Reporting Standards (IFRS) = Set of accounting standards stating how particular types of transactions and other events should be reported in financial statements IFRS = Issued by the International Accounting Standards Board (IASB)

<p>Consistency in financial reporting has become more prevalent between global organizations. = International Financial Reporting Standards (IFRS) Generally Accepted Accounting Principles (GAAP) is governed by both local and international accounting standards. = Generally Accepted Accounting Principles (GAAP) IFRS becoming more widespread on the international scene. = International Financial Reporting Standards (IFRS) Standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements. = Generally Accepted Accounting Principles (GAAP)</p> Signup and view all the answers

<p>Preparation of financial statements available for public use = Financial accountancy Summary, analysis and reporting of financial transactions related to a business = Financial accountancy Issuance of guidelines for recording and summarizing financial transactions = Generally Accepted Accounting Principles (GAAP) Stating how particular types of transactions and other events should be reported in financial statements = International Financial Reporting Standards (IFRS)</p> Signup and view all the answers

<p>GAAP is the standard framework of guidelines for financial accounting used in any given jurisdiction, while IFRS is a set of accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board (IASB).</p> Signup and view all the answers

<p>Stakeholders include stockholders, suppliers, banks, employees, government agencies, business owners, and other parties interested in making decisions based on the financial information. They use this information for decision-making purposes.</p> Signup and view all the answers

<p>Financial accountancy involves the summary, analysis, and reporting of financial transactions related to a business, as well as the preparation of financial statements available for public use. It aims to provide relevant financial information to stakeholders for decision-making purposes.</p> Signup and view all the answers

<p>IFRS has become more widespread on the international scene, leading to increased consistency in financial reporting between global organizations. It sets the accounting standards for how specific types of transactions and events should be reported in financial statements.</p> Signup and view all the answers

<p>Financial accountancy is governed by both local and international accounting standards. Accountants follow the Generally Accepted Accounting Principles (GAAP) as the standard framework of guidelines for financial accounting used in any given jurisdiction, as well as the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).</p> Signup and view all the answers

<p>Financial accounting is a branch of accounting that involves the summary, analysis, and reporting of financial transactions related to a business. It includes the preparation of financial statements available for public use.</p> Signup and view all the answers

<p>GAAP is the standard framework of guidelines for financial accounting used in any given jurisdiction. IFRS is a set of accounting standards stating how particular types of transactions and other events should be reported in financial statements. Both GAAP and IFRS govern financial accountancy.</p> Signup and view all the answers

<p>Examples of stakeholders include stockholders, suppliers, banks, employees, government agencies, business owners, and other interested parties. They use financial accounting information for decision-making purposes.</p> Signup and view all the answers

<p>IFRS, issued by the International Accounting Standards Board (IASB), promotes consistency in financial reporting among global organizations and sets the standards for reporting particular types of transactions and events in financial statements.</p> Signup and view all the answers

<p>Financial accountancy is governed by both local and international accounting standards. Accountants follow Generally Accepted Accounting Principles (GAAP) as well as International Financial Reporting Standards (IFRS) in recording, summarizing, and preparing financial statements.</p> Signup and view all the answers