Ethics:

Ethics in the accounting profession is defined as guidelines and principles. It includes laws and standards of behavior.

AICPA

AICPA stands for the American Institute of Certified Public Accountants. It is founded in 1887. AICPA is set up in the United States and it is the national professional organization of Certified Public Accountant.

Role of AICPA

1. It set a standard of ethics for the best practice for accounting.

2. Create guidelines with the new legislation.

3. In relation to accepted accounting practice (CPA) its monitor’s service quality.

AICPA is designed to resolve the issue related to the audit and preparation of an audit report by the CPA. The AICPA’s provide a higher professional manner benefits to the public, employers, and clients. There are more than 40,000 members in 128 countries in AICPA including government, industries, and international associates.

Revenue:

Revenue is the total income earned by the business before the deduction of expense in its normal course of activity by performing the service or selling goods.

Example: Amount received from the sale of goods and services, rent received, commission.

It is added to the capital. It is an inflow of assets and increases the wealth of the organization, that result increases the owners’ equity.