discussion questions accounting

Each question must be answered in 200 + words  Original WORK!


1.     What are some of the accounting policies commonly described in the Notes to Financial Statements? What are some of the items NOT included in the Notes to Financial Statements?

2.    A company recognizes and matches expenses against revenues on the basis of three principles. Could you name them?

3.    For accounting information to be useful for decision making, it must be understandable to users who possess a reasonable knowledge of business and economic activities and who are willing to study the information with reasonable diligence.  What are the primary qualities that make accounting information useful for decision making?

4.    The FASB has been given two charges. First, it is to develop a conceptual framework of accounting theory. Second, it is to establish standards (generally accepted accounting principles – GAAP) for financial accounting practice. Please explain the FASB conceptual framework.

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