” GAAP as we know is Generally Accepted Accounting Principles, but then what are these principles.
1. Can you describe the various principles, standards and Opinions that are collectively called GAAP. Which agency formulates them and which agency implements them?
2.What are the rules for recording the transactions in the journal? If the company purchases an equipment for cash, why should we credit cash and why should we debit equipment? Discuss in detail the steps followed to determine what account should be debited and what account should be credited.”