Answer the following question1) Explain the purpose of GAAP (Generally Accepted Accounting Principles), including the organization currently responsible for the creation and governance of these standards?2) How are assets and liabilities classified as either current or long term? Explain with example. 3) If a business had a net loss for the year, what would be the closing entry to close income summary and transfer the net loss to the capital account? Explain with example.4) The statement of changes in financial position was designed to enable financial statement users to answer questions like these:a) Where did the profit go?b) What do you mean by dividend? Explainc) How was it possible to distribute dividends in the presence of a loss?
Answer the following question
1) Explain the purpose of GAAP (Generally Accepted Accounting Principles), including the organization currently responsible for the creation and governance of these standards?
2) How are assets and liabilities classified as either current or long term? Explain with example.
3) If a business had a net loss for the year, what would be the closing entry to close income summary and transfer the net loss to the capital account? Explain with example.
4) The
a) Where did the profit go?
b) What do you mean by dividend? Explain
c) How was it possible to distribute dividends in the presence of a loss?
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