1. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) ARE THE RULES BY WHICH FINANCIAL STATEMENTS ARE PREPARED. THE FASB FINANCIAL ACCOUNTING STANDARDS BOARDS DETERMINES THESE RULES. (WITH APPROVAL OF THE SEC (SECURITIES AND EXCHANGE COMMISSION))

2. EXAMPLES HISTORICAL COST PRINCIPLES – ASSETS ARE RECORDED IN THE JOURNAL ENTRIES AT THEIR EXCHANGE VALUE (AMOUNT PAID) MONETARY UNIT - FINANCIAL STATEMENTS WILL BE PRESENTED IN US DOLLARS

3. WHAT ELSE IF TAKING THE CPA EXAM READ YOUR TEXTBOOK AND MEMORIZE ABOUT 30 GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. IF NOT TAKING THE CPA EXAM DON’T WORRY ABOUT THE GENERALY ACCEPTED ACCOUNTING PRINCIPLES. THEY ARE NOT NEEDED FOR THE BOOKKEEPING EXAM