Here is the synopsis of our sample research paper on ACCOUNTING TERMS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper focuses on defining various accounting terms, such as cash versus accrual basis, GAAP and current assets and liabilities vs. long-term. Bibliography lists 5 sources.
Page Count:
3 pages (~225 words per page)
File: D0_MTmoraccte.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
use to compile and produce their financial statements (GAAP, 2009). The principles are put together through policy boards, and, in theory, are supposed to ensure consistency among financial reporting.
GAAP covers aspects of reporting such as revenue recognition, balance sheet item classifications and expenses (GAAP, 2009). Though GAAP is a set of
procedures, there is still plenty of wiggle room for less-than-honest financial preparers to be dishonest, if they so choose. Historical
Cost Historical cost is a GAAP tool that bases the price of an asset on a balance sheet on a nominal, or
original, cost when acquired by a company (Historical Cost, 2009). This is, once again, an effort to standardize assets when they are acquired (Historical Cost, 2009). Under US GAAP, most
assets on balance sheets must be recorded at the historical cost, even if theyve changed in value (Historical Cost, 2009). Investopedias example deals with a companys headquarters, acquired for $100,000
in 1925 (Historical Cost, 2009). Even if the anticipated market value of the asset is $20 million today, its still recorded as $100,000 on the balance sheet (Historical Cost, 2009).
Accrual Basis vs. Cash Basis Accounting The difference between these two methods of accounting is the way in which income is
recognized. Cash-based accounting recognizes income when money is received, and recognizes an expense when its repaid (Cash vs. Accrual Accounting Methods, 2009). If, for example, a business collects a lot
of receivables during a period and pays a number of bills, then the business seems as though its losing money under the cash basis accounting method.
...