Assets = Liabilities + Owners Equity
remember: A L O E
Ex: $320,000 = ________ + $203,000
Internally, accounting reports are used by all Dept. Managers and upper management to evaluate their financial performance and make future plans.
General Accepted Accounting Principles
GAAP ARE PRINCIPLES OR GUIDELINES
The Generally Accepted Accounting Principles are basically guidelines that tell us what to do, they are like rules.
Publicly traded companies have to follow GAAP.
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