Trident University International

ACC501

Case Assignment #1

Core Faculty:
Dr. Timothy Brown

Introduction The purpose of the following paper is to address common terms used in accounting, to include Generally Accepted Accounting Principles (GAAP), double entry accounting, historical cost, accrual basis vs. cash basis accounting and current assets and liabilities vs. non-current items.
I will also describe the general organization of the following three companies; Apple, Inc., Swatch Group, and Nikon. In doing so, I will attempt to determine and demonstrate what is more useful – net income or cash from operating activities.
Part I
The field of accounting can be understood as the art of analyzing and interpreting data. Every organization uses a form of accounting in its day-to-day operations. While some may use it knowingly or unknowingly, nonetheless, accounting is an indispensable method in understanding any business/endeavor in today's global marketplace. It is the means of providing the financial information of any given organization. It summarizes all the company’s transactions and provides a clear image of the business. Accounting keeps the record of all financial reports which is very important for all the managers and stakeholders, such as shareholders, creditors or owners.
Among the terms that are necessary to be familiar with and understand are the following:
Generally Accepted Accounting Principles (US GAAP) – Accountants use Generally Accepted Accounting Principles to govern them in recording and reporting financial information. GAAP consists of a wide array of rules established by accounting professionals, along with the Securities Exchange Commission (SEC). GAAP was created from a broad agreement regarding the theory and practice of accounting during a particular period. Principles employed with regard to accounting may