Question: Article/Case - Financial Statement Submissions Scenario

You are generating financial reports such as a balance sheet, income statement, and statement of cash flows. You noticed that there are irregularities on the financial statements that are not recognized using generally accepted accounting principles (GAAP). You have decided that you need to review the GAAP guidelines before the financial reports can be submitted.

Be prepared to discuss in class:

• Why generally accepted accounting principles (GAAP) are required

• The impact to shareholders if the information is not aligned to GAAP

• Five ways this financial reporting requirement impact the economy