ACCOUNTING - GAAP principles

Introduction

Good Day Learners, today we will be starting with a new topic called GAAP principles.

GAAP stands for Generally Accepted Accounting Practice. It is a collection of rules, procedures and guidelines for accountants to follow when doing record-keeping and reporting financial information.

Now, watch this 3 minute video introducing you to the GAAP principles:

Task

TASK OUTCOMES:

  • Understand the meaning and importance of GAAP
  • Identify and explain the fundamental GAAP principles.

 

TASK:

How well do you know your accounting principles...

1. What does the abbreviation GAAP stand for?

2. Write a short paragraph in which you explain the nature and purpose of GAAP.

3. In a single sentence, explain each of the following GAAP principles and provide an example for each:

  • Business entity concept
  • Historical cost concept
  • Going concern concept
  • Matching concept
  • Materiality concept
  • Prudence concept

 

Use the following resources to assist in the completion of your task:

https://quizlet.com/za/410485368/accounting-grade-10-flash-cards/

Process

Steps to follow for maximum retention and marks:

  • Watching the video in the introduction.
  • Read through the task to understand what's required.
  • Watch the videos and read through the information given as resources to assist in the completion of the task.
  • Use the link below, to get the answer sheet, to complete the task. Login with your gmail account.
  • Submit your work to me via email upon completion.

Answer sheet:

https://docs.google.com/document/d/1xHGmnUPvMp8CDIS4aAb_e2uQs6zj0LXIP-5j2V1cbhc/edit?usp=sharing

 

Evaluation

RUBRIC: Task

 

                 2

               1

         0

   1

GAAP abbreviation expressed correctly.

GAAP abbreviation expressed partly correct.

No answer / does not answer question.

 

               6 - 4

             3 - 1

         0

   2

GAAP explained adequately or extensively, with nature and purpose.

GAAP poorly explained; no nature or purpose given.

No answer / does not answer question.

 

             12 - 7

             6 - 1

         0

   3

Question completed; provide both explanation and example for concepts, correctly.

Question not completed; no explanation for the concept or no example.

No answer / does not answer question.

 
Conclusion

In this lesson we gained the understanding of what GAAP principles are and the importance of it. We also learnt how to identify and explain GAAP principles.

As we continue with the Accounting syllabus and learn more about various accounting procedures, we will refer back to the GAAP concepts we learnt in this topic and see how they apply to the compilation of Financial Statements.

Study these concepts, as they will be something you will see until the end of your high school career.

Watch the video below as preparation for the next lesson:

 

Credits

Here you can find all the videos used in this lesson, which will be useful for the task and help you attain understanding on the topic:

https://quizlet.com/za/410485368/accounting-grade-10-flash-cards/

Teacher Page

This topic is short, but of great importance. Therefore you need to understand this thoroughly in order to understand their affect on the procedures we follow in accounting.

Goodluck and happy studying!

 

Yazeed Pregnolato

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