ACCCOB1 Accounting Principles Exam Study Guide with Complete Solutions GAAP - Correct Answer Generally Accepted Accounting Principles. The standards and rules that accountants follow while recording and reporting financial activities. It encompasses the procedures accepted in the accounting process.IASB - Correct Answer International Accounting Standards Board. They actively develop and issue accounting standards that will to be followed internationally. Its purpose is to narrow down the differences in the world when preparing a financial statement.Conceptual Framework of Financial Reporting - Correct Answer 1. Underlying Assumption
- Entity principle
- Going concern
- Monetary Unit
- Time Period
- General Principles
- Historical cost principle
- Revenue recognition principle
- Matching principle
- Accrual basis principle
- Full disclosure principle
- Modifying Constraints
- Materiality
- Cost-benefit analysis
- Conservatism
- Industry practice
- Qualitative Characteristics
- Usefulness
- Understandability
- Relevance
- Reliability
- Neutrality
- Comparability
- Consistency
- Going concern
- Monetary Unit
- Time Period
- Revenue recognition principle
- Matching principle
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Underlying Assumptions - Correct Answer 1. Entity concept
General Principles - Correct Answer 1. Historical cost principle