U.S. financial reporting

U.S. financial reporting requirements are based on Generally Accepted Accounting Principles (GAAP), as developed by the Financial Accounting Standards Board (FASB). There are five major “pillars” or principles of GAAP accounting: – Going Concern Assumption – Arms Length Principle – Cost Principle – Matching Principle – Realization Principle Describe the meaning of each of these principles in detail and provide examples as to how they are applied to transactions.

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