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In the following discussion of a few of these terms one will be able to more easily decipher the financial reports that will also be addressed. By having the ability to do so, one should be able to make more sound decisions in assessing a company’s financial position.
The first topic of discussion will be concerning the Generally Accepted Accounting Principles, commonly referred to as GAAP. These principles are the rules of engagement, so to speak, for accounting in the United States and are developed by a consensus of experts and members of the Financial Accounting Standards Board (accounting, 2008)...
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