XACC 280 Week 1 CheckPoint 1 - Accounting Assumptions, Principle and Constraints

Checkpoint: Accounting Assumptions, Principle and Constraints
• Write an essay in 250 to 300 words, including the following:
o The basic assumptions of accounting
o The principles of accounting
o The constraints of accounting
A conclusion stating how you think sound financial reporting depends on principles, assumptions, and constraints. Refer to the U.S. G.A.A.P in your response

There are three basic assumptions of accounting. They are to identify economic events, to record events in historical order of financial activity, and to communicate the information through accounting reports (Weygandt, Kimmel, & Kieso, 2008). When identifying economic events, companies will focus on events that are relevant to the company. When companies are recording financial information, it is in a systematic, chronological diary that is usually measured in dollars and cents. When communicating this information to the user, it can be done using graphs, charts, percentages, or other forms of writing as well.
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