accuity mock exam Flashcards
What is the purpose of financial accounting?
To provide useful financial information to external parties
When was the SEC established?
1934
The role of the Securities and Exchange Commission (SEC) in the formulation of accounting standards can be best described as
Varied - the SEC relies on the FASB to develop standards but gives advice and recommendations to the private sector as needed.
FASB DUE PROCESS Step 1
Board agenda
FASB DUE PROCESS Step 2
conduct research
FASB DUE PROCESS Step 3
public hearing
FASB DUE PROCESS Step 4
exposure draft
FASB DUE PROCESS Step 5
standard
which organization hasnt set accounting standards?
PCAOB
which organization has set accounting standards?
APB & CAP in the past, and the FASB currently
What is the weaknesses of cash-basis accounting?
-doesn’t account for all aspects of the credit environment
-it doesn’t provide investors with as timely information about an organization’s future cash flows.
What is GAAP comprised of?
any accounting guidance included in the FASB Codification
What organization is responsible for monitoring and promulgating/establishing GAAP?
FASB
True/False: The expectations gap is due to the difference between what the public thinks accountants should do and what accountants think they can do
True
What is not a major challenge facing the accounting profession?
Accounting for hard assets
