2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by

The U.S. GAAP standards in this image (and found in your book on page 80) were developed and codified by the Financial Accounting Standards Board (FASB) and accepted by the AICPA (American Institute of Certified Public Accountants). You have probably heard of the AMA (American Medical Association) for physicians. It is a professional organization that promotes and educates physicians. The professional organizations that developed GAAP (Generally Accepted Accounting Principles) are similar to the AMA in that they provide a similar role for accountants providing guidance for how GAAP accounting standards must be applied. 

Case Study 5-1 on pages 80-81 demonstrates the way professional accountants must use professional judgement when reporting results. Medicine is art and science.  “Accounting is more art than science”. (Harrison and Harrison, 2013, p.80)

2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

Read the case and discuss the following:

Accurately reflects

Which of the approaches in the case most accurately reflects the financial operations of the company for their first year of operation?

2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

Accounting treatments offered

What are the two different accounting treatments offered? Do you find both acceptable, and why or why not?

2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

Participation Requirements: The minimum number of posts this week is 3 substantive posts (total) for the week on3 different days. Initial post is due by Wednesday. Please refer to the grading rubric for discussions in your gradebook. Remember that APA format is required.

 

2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

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2024 – The U S GAAP standards in this image and found in your book on page 80 were developed and codified by.

 

Shauna Lewis