Chapter II covers fundamental concepts to help you build a good foundation before moving to more elaborate accounting topics.
In preparing general-purpose financial statements, there are guidelines and principles that are understood by both the accountants who prepare them and the users of such reports are followed. These are set forth in the GAAP and IFRS.
Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) are actually based on the fundamental accounting principles and concepts discussed in this chapter.
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