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General Accepted Accounting Principles

The differences of financial accounting and managerial accounting are very prevalent. Some of these differences include precision, mandatory external reports and emphasizing financial consequences of past activities. These characteristics are describing financial accounting. Financial accounting is a way of measuring economic performance. This type of accounting summarizes data to prepare balance sheets and income statements for the firm. The specific difference discussed in this piece will be the difference of the Generally Accepted Accounting Principles (GAAP). Financial accounting must follow GAAP, while managerial accounting does not need to follow GAAP.

The Generally Accepted Accounting Principles help steer firms in recording business transactions. The GAAP are not rules, but guidelines for a firm to follow for recording. The principles set a minimum level of regularity in statements. There are many positives in compliance with the GAAP. The principles maintain creditability because it informs outside companies that this company using the GAAP is being portrayed precisely. Stockholders and analysts can read a report knowing that it abides with the accounting principles.
There are many principles to be discussed for the GAAP. The six principles to be discussed during this article are economic entity assumption, accrual basis accounting, revenue recognition principle, relevance, reliability and consistency principle, materiality principle, and cost principle. Economic entity includes any organization in the economy. Examples can include schools, hospitals, governments and churches. Every event must be recorded by a specific entity. Another part to this principle is that records can not include any personal assets or liabilities relating to the owners. The second principle is the accrual basis accounting principle. Accrual basis accounting captures financial aspect in each event in the period of occurrence.

 Revenues are recognized when the business receives the cash. Expenses are recognized when the business pays with cash. Furthermore, the revenue recognition principle is when revenues are earned upon the finishing of a product or service, but without view to the timing of cash flow. The last principle in the GAAP discussion is relevance, reliability, and consistency. Information must be useful. To be useful, this information in accounting must be relevant, reliable and in a consistent method. Relevant information will help a decision choice understood properly by examining the businesses past performance, and the future position. Detailed information is needed for internal users to estimate the company's value. Reliable information must be confirmable. Otherwise, this information cannot be used or trusted in preparation of financial statements. Lastly, the information must be consistent. This means that the methods must be the same for each accounting period. Comparisons can be made between accounting periods if consistent.

Twelve Basic Principles in U.S. Kids Family Education

The U.S. media once had published an article about the family education ways and condition in the U.S.A. and 12 basic principles about how to make children grow healthy and happy in the good family atmosphere were introduced, which would be useful for the family education status in China.

Right now, the 12 basic principles are listed below in sequence.

Firstly, sense of belonging principle, which means that it is the parents' responsibility to keep children grow in a healthy family environment.

Secondly, hope principle, which means it is important to let children have the good hope about the things they want to do.

Thirdly, strength principle, which means that as parents, you should not fight with the children with strong force.

Fourthly, management principle, when the children are minors, it is the parents' responsibility to manage their life.

Fifthly, suggestion principle, in family life, children, especially the minors, have no right to make the decision at home, however, they have the right to express their wish and suggestion. As parents, you must be sure to listen to their voice and suggestion.

Sixthly, good example principle, as is known to all, the good example in daily life is that best teacher for children because they can learn lots of them from the example. As parents, why not do the good example for your kids?

Seventhly, principle of seek common points while reserving difference, parents must respect their children's views about the world and to the greatest extent try to understand their thinking.

Eighthly, punishment principle, parents must be more careful to use this punishment principle because it is easy to lead to children's reverse psychology and even revenge thinking way.

Ninthly, consequences principle, parents must let children understand the possible consequences of their behaviors in the real world.

Tenthly, structure principle, when children are young, parents should let them know the boundary between ethical and legal.

Eleven, 20 yards distance principle, in order to foster the children's sense of independence, the distance between parents and kids should be at least 20 yards.

Twelve, four W principle, which means who, where, what and when. Under any circumstances, parents should know who play with their children together and where they are playing and what they are doing and finally when they will go home.

Just from the 12 basic principles above, we can find that the family education in the U.S pay more attention to the cultivation of character and self-cultivate with morals.