Q 1:
Discuss the role of each of the following in the formulation of accounting principles:
- a.American Institute of Certified Public Accountants
- b.Financial Accounting Standards Board
- c.Securities and Exchange Commission
Q 2:
How does the concept of consistency aid in the analysis of financial statements? What type of accounting disclosure is required if this concept is not applied?
Q 3:
What are the three principal financial statements of a corporation? Briefly describe the purpose of each statement.
Q 4:
Why are notes to statements necessary?