Financial Accounting Principles Quiz

Financial accounting is concerned with the summary, analysis, and reporting of financial transactions related to a business.

Examples of people interested in receiving financial information for decision making purposes include stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders.

GAAP stands for Generally Accepted Accounting Principles and it is the standard framework of guidelines for financial accounting used in any given jurisdiction. It includes the standards, conventions, and rules that accountants follow in recording, summarizing, and in the preparation of financial statements.

<p>IFRS stands for International Financial Reporting Standards and it is a set of accounting standards stating how particular types of transactions and other 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. It is governed by Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).</p> Signup and view all the answers