Answer
Distinctive legitimate writing relating to techniques of recording accounting transactions exists today. Some authoritative writing has received more support from the profession than other writing. The writing that has substantial authoritative support is the one most upheld by profession and ought to be followed when recording accounting transactions. These standards and procedures are referred to as generally accepted accounting principles (GAAP).
Work Step by Step
There are four different facets, and the first facet is the one with the most authoritative support. It comprises of FASB Standards Interpretations and Staff Positions, APB Opinions and Interpretations, and CAP Accounting Research Bulletins. The second facet comprises of AICPA Industry Audit and Accounting Guides, AICPA Statements of Position, and FASB Technical Bulletins. The third facet comprises of AICPA Practice Bulletins and EITF archives, Concepts Statements, and other authoritative pronouncements. The fourth facet (least authoritative) includes AICPA Accounting Interpretations, FASB Implementation Guides, and prevalent industry practices.
