What is GAAP? GAAP stands for Generally Accepted Accounting Principles. It is the set of rules and guidelines for U.S. companies to follow. GAAP regulates financial reporting for public companies, private businesses, non-profits, and government authorities. This means that GAAP outlines the procedures to make sure that businesses are recording their financials in the same
See Also: Reducing Your Cash Conversion Cycle Key Performance Indicators (KPI’s) Accounting Principles 1, 2, and 3 Accounting Principles 5, 6, and 7 Continuous Accounting: The New Age of Accounting Continuous Accounting is the new age of accounting. It provides a more efficient way to review financial performance in a real-time automated process, and a trustworthy, repeatable accounting cycle
For some, networking is a dream come true… Extrovert: I’ve been wanting to talk all day about business, economics, and future ventures. Yippee! There’s a networking event tonight! I’m going to rock that room tonight. And for others… Not so much! Introvert: There’s a networking event tonight. I need to be prepping all day. What am I
Several years ago, I was consulting with a client in the staffing industry that was having a profitability problem: We have happy customers and seem to be doing well, but we just aren’t making more money… Sound familiar? After visiting with the frustrated owner of the business, I visited various departments to understand the people and
Debit Versus Credit Since the late 13th century, people have discussed debit versus credit. Double entry accounting was conceived centuries ago. Now, it is an international standard to record all business transactions with a debit and a credit. This double entry keeps the accounting equation balanced. It also ensures that one account is not left
See Also: Debits and Credits Double Entry Bookkeeping Debits vs Credits in Accounting When people discuss debit vs credit, they are usually referring to double entry accounting. More specifically, a debit and credit are recorded for each transaction. These two are required for each transaction in order to keep the accounting equation in balance. There
Fiscal vs Monetary Policy What is Fiscal Policy? Fiscal policy is essentially how the government decides to collect and spend money to impact the economy. This is studied in Macroeconomics to better understand the relationship between the economy and governmental influence. The study of fiscal policy is useful in speculating the reaction to changes in
See Also:Accrual Based AccountingGenerally Accepted Accounting Principles (GAAP) Cash Accounting vs Accrual Accounting There are two different types of accounting that businesses use: cash accounting vs accrual accounting. Most businesses use accrual accounting, but it varies by the type of business. These two methods are both legal and accepted by the Internal Revenue Service. The primary difference
There is a difference between cost control vs cost reduction. Most people think that controlling costs and reducing costs are one and the same when, in fact, they can generate two totally different outcomes. The first thing you need to know is that you can’t grow a company by cost reduction alone. You can get
Operating Cycle Definition The Operating cycle definition establishes how many days it takes to turn purchases of inventory into cash receipts from its eventual sale. It is also known as cash operating cycle, cash conversion cycle, or asset conversion cycle. Operating cycle has three components of payable turnover days, Inventory Turnover days and Accounts Receivable
See Also: Accrual Based Accounting Modified Accelerated Cost Recovery System MACRS 10 Q Asset History of Accounting Full Disclosure Principle Generally Accepted Accounting Principles (GAAP) Definition Generally Accepted Accounting Principles (GAAP) are a set of standards, guidelines, and regulations for financial accounting. Companies should follow GAAP rules when preparing financial statements. GAAP rules were established
See Also: Absorption vs Variable Costing Semi Variable Costs Sunk Costs Marginal Costs Average Cost Variable vs Fixed Costs Definition In accounting, a distinction is often made between the variable vs fixed costs definition. Variable costs change with activity or production volume. In comparison, fixed costs remain constant regardless of activity or production volume. All Costs In
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