Ethical and Legal Obligations in Accounting

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Issue:

Business

 

Written by:

Joseph W

 

Date added:

September 10, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1128

 

Was viewed:

4708 times

 

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Essay content:

The SEC has statutory authority over setting standards in the public sector; however, according to the FASB website, the SEC relies on the private sector for this function "to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest" (FACTSaboutFASB, 2005, 2)...
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A central concept is the accounting equation, in which assets equals liabilities plus owners' equity, which is presented on the balance sheet. Basic principles in recording transactions (which provide the basis for preparing the income statement) are revenue recognition, which occurs at the time of a sale, and the matching principle, whereby the revenue is matched to any corresponding expense that was incurred to produce the revenue...
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