1) A common set of standards applied by all businesses and entities provides financial statements which are reasonably comparable.

Without a common set of standards, each enterprise could, and would, develop its own theory structure and set of practices, resulting in non-comparability among enterprises. 2) A.) Committee on Accounting Procedures (CAP) B.) Accounting Principles Board (APB) C.) Federal Accounting Standard Boards (FASB) 3) A.) American Institute of Certified Public Accountants B.) Emerging Issues Task Force C.) Generally Accepted Accounting Principles D.) Consistency 4) To provide in one place all the authoritative literature related to a particular topic. 5.) a. Ex A b. L A c. A L d. A R e. A R f. Ex L g. L A h. Ex A i. A L j. A A k. E A l. Ex Cash Long-Term Debt Cash notes payable 25,000 Cash Office Equipment 25,000 50,000 50,000

Accounts Payable 200,000 Revenue Accounts Receivable Fees Earned

200,000 800,000 800,000

Wages Expense 175,000 Wages Payable 175,000 Taxes Payable 20,000 Cash 20,000 Expense Prepaid Prepaid Unearned Cash 900,000 Accounts Receivable 900,000 Depreciation Expense 25,000 Accumulated Depreciation 25,000 Interest Expense 20,000

A m. Eq A

Cash Retianed Earnings Cash

20,000 15,000 15,000