Accounting Standard
Categories: Accounting, Careers, Company Management, Tax, Trusts and Estates, Ethics/Morals
It's basically GAAP, or Generally Accepted Accounting Principles, which make up the religion of accountants. Be conservative. Show your work. Make the numbers honestly reflect reality to the best of your ability.
Accounting standards used to not even be a thing. That is, an extremely high tolerance was allowed in the U.S. government before the Great Depression, when so many uneducated farmers lost everything. Along came a slew of Acts, which covered the details for minimum disclosure, provided a rational approach to business analysis, and created governing bodies that would adjust to the modern era on the fly, as even the most slow dullard in the accounting fields in 1934 realized that, a hundred years later, beans would no longer be counted with socks off and toes involved.
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Finance: What is AICPA?6 Views
Finance a la shmoop what is the AICPA alright people when you think wild and [People dancing in a club]
crazy parties rock stars jumping into swimming pools from the seventh floor [Man jumps off rooftop into swimming pool]
teenagers in skimpy swimsuits running down the halls of hotels you don't think
of the AICPA why because it stands for the American Institute of Certified
Public Accountants and their parties are just different [Group of people sipping cocktails]
yeah the AICPA is responsible for setting US accounting standards it
sets ethical standards so there isn't a CPA somewhere writing off weekly [Roosters preparing to fight]
trips to a cockfighting arena as, you know travel expense it sets all kinds of
professional standards as well like common tax practices, financial statement
auditing practices and quality control for accounting firms so that no matter
which accounting office you visit the coffee in the lobby can't be cold [Man drinking coffee]
come on AICPA you can do better than that all right well the AICPA also puts
together and grades the exam you have to take if you want to become one of those [Boy studying for exam]
accountant people the uniform CPA exam ...Fail to pass that
baby and you may only be able to get a job counting actual beans not the [Man counting beans on conveyor belt]
financial ones so yeah the AICPA is the wizard behind
the curtain of the world of CPA-ing certified public accounting yeah they're
they're just concerned with a different kind of green like AC/DC green [Man singing AC/DC into microphone]
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GAAP is an acronym for Generally Accepted Accounting Practices. In order to remove as much subjectivity as possible, accounting policy bodies, such...