accounting

Generally accepted accounting principles (GAAP) are the accounting standards in the U.S. IFRS are the international accounting standards. IFRS are the International Financial Reporting Standards. Chapter 1: Financial Accounting and Accounting Standards This is Intermediate Accounting Chapter 1. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. Financial Reporting Environment Accounting is the identification, […]

Adjusting entries are made at the end of a period to update accounts. An adjusting entry affects the income statement and balance sheet accounts. The accounting period Companies prepare financial statements for months, quarters, and years. An annual financial statement is also called an annual report. Companies can select their accounting years or fiscal years.

Long-term assets are resources that have useful lives over one year. Long-term assets include land, buildings, equipment, machinery, and intangible assets.

The accounting equation is the cornerstone of the accounting system. It shows the relationship between a company’s assets, liabilities, and equity. The accounting equation is Total Assets = Total Liabilities + Total Equity. Assets are economic resources owned by the company. This includes current assets like cash, inventory, and receivables. Assets also include non-current assets