What is a Liability? In accounting, a liability is debt owed to company or individual. Liabilities are a claim on a company’s assets by the creditors. Liabilities require a payment of assets, such as cash, or a performance of a service. A liability occurs from past transaction that requires a future economic payment. Many liability […]

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In accounting, an asset is a resource owned by a company or entity. Assets provide probable future economic benefits. These benefits include increasing sales or cash flow or reducing expenses. What is an Asset? Assets appear on a company’s balance sheet. As assets increase, the value of the company increases. Assets are one of the

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Conceptual Framework for Financial Reporting

The conceptual framework shows the basic objectives of financial reporting. It also describes the financial reporting elements and concepts. The conceptual framework of generally accepted accounting principles is set by the Financial Accounting Standards Board (FASB). This is Intermediate Accounting Chapter 2. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. Accounting Conceptual Framework The

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Financial Accounting Standards

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,

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