Earl mark B.

Huerbana June 21, 2018

Cert IT 2B
1. What is accounting and modify
is the measurement, processing, and communication of financial information about
economic entities such as businesses and corporations.
Accounting can be divided into several fields including financial accounting,
management accounting, external auditing, tax accounting and cost accounting.
2. Importance of accounting and modify
Generally accepted accounting principles (GAAP) are a common set of accounting rules
and standards that dictate how financial statements are prepared. Public companies, nonprofit
organizations, and government entities are required to prepare financial statements in
accordance with GAAP. These guidelines were developed over time by the Financial Accounting
Standards Board (FASB), and the American Institute of Certified Public Accountants (AICPA).

Without GAAP, companies wouldn't be held to a strict set of standards, which means
they'd have a lot more leeway in deciding what information they choose to share or keep
hidden. GAAP, therefore, serves the very-important function of making sure companies and
organizations can't "cheat" on their financial reporting.

3. Definition of accounting principle and modify

Accounting principles are the rules and guidelines that companies must follow when
reporting financial data. The common set of U.S. accounting principles is the generally accepted
accounting principles (GAAP). To remain listed on many major stock exchanges in the U.S.,
companies must regularly file financial statements reported according to GAAP

4. Development of accounting procedure

Generally accepted accounting principles, or GAAP, encompass the rules, practices, and
procedures that define the proper execution of accounting. It is important to note that this
definition is quite broad, taking in more than just the specific rules issued by standard setters. It
encompasses the long-standing methodologies and assumptions that have become engrained
within the profession through years of thought and development. Collectively, GAAP form the
foundation of accounting by providing comprehensive guidance and a framework for addressing
most accounting issues.

5. The phrases of accounting

Accounting is the action or process of keeping financial accounts. The process of
accountancy is important in communicating financial information about a business to users such
as shareholders and managers.

Accounting is often referred to as the 'language of business' because it is the way by

which financial information about a business identity is reported to a wide range of groups and
people. Accounting that focuses on reporting within a business is referred to as management
accounting. When accounting is focused on reporting and providing information to people
outside of the business entity, it is usually referred to as financial accounting.