ACG3101 Financial Accounting and Reporting 1 Course Study Notes

 when I decided to get into aerospace engineering, I knew accounting was the way to go
 finite element analysis involves lots of 0s and 1s, and it is important to make sure all those 0s
and 1s balance
 the bottom line is this: are there enough 0s and 1s on one side of a ledger to ensure that the
aircraft can fly?
 If we zoom out far enough all those 0s and 1s seem safe right?
 It is just important that we never actually fly on any of those accounting 0 and 1s and keep it all
digital or virtual – just like all those virtual airplanes rolling off the assembly line in Renton
right now
 this goes back to why I decided to get into engineering
 riding a bicycle is a lot of fun
 there is nothing quite like the refreshing air, cool breeze, nice sunshine, and waving at the
occasional lumpy woman walking in sweat pants
 in any case, let's say I have this routine path I bike on, 5 miles or so
 I'm biking, and biking, and then out of nowhere someone places a SAM site right along my bike
route
 Am I expected to just stop biking because someone puts an anti-aircraft missile battery next to
my biking trail?
 Of course not! So what do I do?
 I build a stealth bicycle.
 I create a mini F117 on two wheels using cardboard spray painted black in the shape of two
tetrahedrons, and for good measure, I even do the electromagnetic method of moments calcs to
guarantee the radar signature is the size of a goose
 and then I continue on my merry way
 #OriginStoryF117

"Generally Accepted Accounting Principles" (GAAP) refers to a common set of accounting principles,
standards, and procedures that companies use to compile their financial statements in the United States.
These principles are developed and maintained by various standard-setting bodies, including the
Financial Accounting Standards Board (FASB) for private companies and the Governmental
Accounting Standards Board (GASB) for state and local governments.
Here are some key characteristics of GAAP:
1. Consistency: GAAP promotes consistency in financial reporting by providing uniform
guidelines for recording and reporting financial transactions. This ensures that financial
statements are comparable across different companies and periods.
2. Relevance and Reliability: GAAP aims to provide financial information that is both relevant
and reliable for decision-making. Relevance ensures that financial statements contain
information that is useful for users, while reliability ensures that the information is accurate and
can be trusted.
3. Transparency: GAAP requires companies to disclose relevant information in their financial
statements, including notes and supplementary disclosures, to provide users with a complete and
transparent view of their financial position and performance.
4. Prudence: GAAP encourages the use of prudence or conservatism in financial reporting. This
 means that companies should exercise caution when making estimates and judgments,
preferring to err on the side of understating rather than overstating assets and income.
5. Materiality: GAAP allows companies to apply the principle of materiality when preparing their
financial statements. Materiality refers to the significance of an item or event in influencing the
decisions of users of financial information. Companies are only required to report information
that is material to users.
6. Hierarchy of Principles: GAAP provides a hierarchy of accounting principles to guide
financial reporting when multiple accounting methods or interpretations exist for a particular
transaction or event. This hierarchy helps companies determine the most appropriate accounting
treatment based on the specific circumstances.
Overall, GAAP serves as a foundation for financial reporting in the United States, providing
consistency, reliability, and transparency in the preparation of financial statements. Adhering to GAAP
standards is essential for companies to maintain credibility with investors, creditors, regulators, and
other stakeholders.
As of my last update in January 2022, there hasn't been any widely reported decision by Gap to
discontinue selling khakis entirely. However, retailers frequently adjust their product offerings based on
various factors such as changing consumer preferences, market trends, and business strategies. It's
possible that Gap may have made changes to its product lineup, including reducing or altering its khaki
offerings, in response to shifts in the retail landscape or to focus on other categories.
If you're specifically interested in Gap's current khaki offerings, I recommend checking their website or
visiting a Gap store for the most up-to-date information on their product inventory and availability.
As of my last update in January 2022, there haven't been any widely reported instances of Gap Inc.
using non-GAAP (Generally Accepted Accounting Principles) accounting principles in their financial
reporting. Gap Inc., like other publicly traded companies in the United States, is required to follow
GAAP standards when preparing their financial statements for public disclosure.
However, companies may sometimes supplement their GAAP financial statements with non-GAAP
financial measures in their earnings releases, investor presentations, or other communications. Non-
GAAP measures are often used to provide additional insight into a company's financial performance or
to adjust for certain items that management believes are not reflective of ongoing operations.
It's essential for investors and stakeholders to carefully review both the GAAP and non-GAAP
measures presented by a company to gain a comprehensive understanding of its financial performance
and to assess the appropriateness of any adjustments made to the GAAP figures.
The term "gap" in the context of a balance sheet typically refers to a mismatch between the maturities
of assets and liabilities. However, it doesn't necessarily imply a deficiency or imbalance. Instead, it
reflects the normal operations of a company's financing activities.
For Gap Inc., like other retail companies, it's common to have a certain degree of maturity gap in their
balance sheet due to the nature of their business. For example:
1. Inventory and Accounts Receivable: Retailers like Gap typically have short-term assets such
as inventory and accounts receivable. These assets are expected to convert to cash relatively
quickly, usually within a year.
2. Short-Term Liabilities: Gap also has short-term liabilities such as accounts payable and short-
term debt. These obligations are due within a year or less.
3. Long-Term Debt: Gap may have long-term debt, which is a liability with a maturity of more
 than one year. This creates a mismatch between short-term assets and long-term liabilities,
representing a maturity gap.
This maturity gap is a normal part of Gap's financing structure and is managed through various
financial strategies, including refinancing, debt issuance, and cash management.
However, if you're referring to a specific financial metric or aspect of Gap's balance sheet that you
believe resembles a "gap," please provide more context so I can offer a more tailored response.