Solved by verified expert :There are three main parts to this case that requires you to prepare and
submit a three to five page paper. Please make sure this paper is well
organized and covers all of the items below.Part ISearch
the course background information, the Internet and/or the Cyber
Library. Discuss the terms listed below. Your discussion should expand
on the definition as given in the module background. Explain why these
concepts are important to financial statements.•Generally Accepted Accounting Principles (US GAAP);•International Accounting Standards (IFRS);•Securities and Exchange Commission (SEC);•Annual report; and•10-K, 10-Q, and 8-KPart IIExplain
the basic formats of financial statements such as income statement,
balance sheet, statement of cash flows, and statement for retained
earnings.Part III1.Everything in Accounting typically falls
into one of three categories, as illustrated by the Accounting Equation.
State the Accounting Equation: Assets = _______________ +
_______________2.You will note that the Accounting Equation
comprises 3 “categories,” each of which can be broken down further into
accounts. For each of the three main categories of the Accounting
Equation, list 5 or more accounts with actual amounts that would
typically be classified into each. For instance, Land & Equipment
would typically be categorized as Assets.3.To simplify your answers, complete the assignment using a basic table or diagram.Background information:
The term GAAP or generally accepted accounting principles refer to the
standards promulgated by the Financial Accounting Standards Board
(FASB). All US publicly held companies and other companies audited by
external auditors must adhere to these standards.
The four financial statements required by US GAAP are:
The income statement
The balance sheet (or statement of financial position)
The statement of cash flow
The statement of retained earnings
The financial statements are based on the accounting equation, i.e.
Assets = liabilities + equity
Publicly companies must file a number of reports with the Securities and
Exchange Commission (SEC) including quarterly and annual financial
statements. These statements are typically released to the public and
published on the corporate website. The annual report is traditionally
associated with the release of financial information to the public.
The Profession
The American Institute of Certified Public Accountants (AICPA) states on
its homepage
(http://www.aicpa.org/Career/CareerPaths/Pages/CareerPaths.aspx) that
the below specializations are available career paths to a licensed
public accountant (CPA).
Forensic and Valuation Services Taxation
Fraud Prevention, Detection & Investigation
Audit
Business and Industry/New Finance
Government
Personal Financial Planning
PrimePlus/ElderCare
Employee Benefit Plan Audit
Information Technology (IT)
For further information about the CPA profession and rules for licensing
go to the websites for AICPA or the National Association of State
Boards of Accountancy (NASBA).
