The fiscal year-end is the conclusion of a 12-month accounting cycle. A fiscal year can be the same as a calendar year, from January to December, or it can begin and end at any time, based on the company’s needs. All public companies are required to publish financial statements at the end of their fiscal [...]
If a company releases its financial statements to the public, it is required to follow Generally Accepted Accounting Principles, called GAAP, in the preparation of those statements. “GAAP” consists of three important sets of rules: Basic accounting principles and guidelines. Detailed rules and standards issued by the Financial Accounting Standards Board (FASB) and its predecessor [...]
Money is a great motivator, which is why financial reports exist. Financial reports must contain truthful and unbiased information, and accountants must create unbiased and accurate financial reports for those who deal with finance in the various sectors of society. Accounting is the legal and moral method to create accurate and honest decisions that will [...]
These basic principles form the basis which modern accounting is based. The best-known of these principles are as follows: The Accrual Principle: The concept that accounting transactions should be recorded in the periods when they actually occur; Ignoring this principle would cause delays in payments. […]
Accounting principles are the rules and guidelines that companies must follow when reporting financial data. American accounting principles are defined as Generally Accepted Accounting Principles (GAAP). Companies must regularly file financial statements according to GAAP to remain listed on the major U.S. stock exchanges. GAAP is based on three rules: […]
Businesses get the money; Accountants keep the books. Accountants keep businesses, governments and “not-for-profits” groups working by following systematic methods of recording their financial activity. […]
