Is GAAP a comprehensive basis of accounting? Becker Question?
Is GAAP a comprehensive basis of accounting? Becker Question?
I am studying for my cpa exam and the Question book asks the question in a confusing manner. Maybe you can answer this for me too. "Which is not a comprehensive basis for accounting, other than GAAP? A)Cash receipts and disbursements basis B)The basis it uses on its income tax return C) Basis used by an entity to comply with financial reporting requirements of a lending institution D) Basis used by an entity to comply with financial reporting requirements of a government regulatory agency. PS This study guide obviously does not include the answer. Thank you to anyone who can assist.
Answers:
Chosen Answer
Angela X: GAAP is a comprehensive basis of accounting. A lot of financial statements are prepared using GAAP. But also a lot of financial statements are prepared with other comprehensive basis of accounting ( the term--other comprehensive basis of accounting---OCBOA). This multiple choice is asking you to pick the one which is not one of OCBOA. So C)...lending institution is the answer Because in Becker's book ---2005 version...page A5-3 Each of the following would be considered a comprehensive basis of accounting (OCBOA) other than GAAP. 1. A cashi receipts and disbursements system 2. A basis of accounting that the entity uses (or expect to use) to file its income tax returns. 3. A basis of accounting used to comply with the requirements of a governmental regulartory agency having jurisdiction over the reporting entity. 4. A definite set of criteria having substantial support that is applied to all material items, such as price-level adjusted financial statements. So C)...lending institution is the answer
2006-05-21 18:53:37
Angela X: GAAP is a comprehensive basis of accounting. A lot of financial statements are prepared using GAAP. But also a lot of financial statements are prepared with other comprehensive basis of accounting ( the term--other comprehensive basis of accounting---OCBOA). This multiple choice is asking you to pick the one which is not one of OCBOA. So C)...lending institution is the answer Because in Becker's book ---2005 version...page A5-3 Each of the following would be considered a comprehensive basis of accounting (OCBOA) other than GAAP. 1. A cashi receipts and disbursements system 2. A basis of accounting that the entity uses (or expect to use) to file its income tax returns. 3. A basis of accounting used to comply with the requirements of a governmental regulartory agency having jurisdiction over the reporting entity. 4. A definite set of criteria having substantial support that is applied to all material items, such as price-level adjusted financial statements. So C)...lending institution is the answer
2006-05-21 18:53:37