Personal financial statements
Jane Wilson has prepared personal financial statements in which her assets are valued at her historical cost, less appropriate depreciation. Is this presentation in conformity with generally accepted accounting principles? Can a public accounting firm audit these statements and issue a standard unmodified opinion?
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Generally accepted accounting principles, (GAAP), are harmonious minimum guidelines and standards for financial accounting and reporting. They provide the right classification and measurement criterion for financial reporting. The presentation by Jane Wilson does not adhere to the generally accepted principles. Wilson should not have prepared the financial statement using historical cost. It is stated in SOP 82-1 that assets….
APA
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