accounting gaaps 2
Updated: 3/29/2021
accounting gaaps 2

Storyboard Text

  • Another example of this is when calculating our liabilities. We want to buy this stack of paper for $200 in a few weeks. Due to this principle, we put our expected losses on the balance sheet. So, we'd have a liability account of $200 for paper.
  • $200
  • That was a little confusing... did you get all of that?
  • Yeah! So this principle expects us to put our expected loss on our statements and makes sure that we put the correct amount of assets.
  • It's okay George! The principle of regularity dictates that our firm needs to very strictly adhere to established rules and regulations.
  • So now we're going to move onto the principle of regularity. Are you familiar with it?
  • Well... Not really....
  • We need to adhere to these rules and regulations, so that we can be held to a standard that our clients can expect!
  • Ah, okay! I understand.
  • Oh, no! Thank you! I think I understand everything now. I feel a lot more confident!
  • Those are all the principles for today! Is there anything else you want to go over?
  • I'm so glad I know the GAAPs! They will help me in becoming the best accountant ever! Ann was so nice to teach me everything!