C4 Acronym Alert! Standards for Financial Accounting

Question 1

accountants plied their trade almost unmonitered until the…..?

Answer 1

1929 stock market crash. The AICPA partnered with the New York Stock Exchange to agree upon the five priniciples of accounting.

Question 2

the Security and Exchange Commission (SEC’s) mission is…?

Answer 2

is to make sure publicly traded companies tell the truth about their business and treat investors in a fair fashion by putting the needs of the investor before the needs of the company!!

Question 3

Sarbanes-Oxley Act of 2002 (SOX) is mandatory regulations for who to abide by? And the established 11 articles including an oversight board called ?

Answer 3

any publicly traded company

Public Company Accounting Oversight Board (PCAOB)

Question 4

Public Company Accounting Oversight Board (PCAOB)

Answer 4

is the watchdog of the public company accounting and auditing profession. They lay out the responsibilities of the senior executives are bound to for the accuracy and completeness of corporate financial reports

Question 5

GAAP tells accountants exactly how financial data has to show up on the…?

Answer 5

income statement, balance sheet, and statement of cashflows.

Question 6

The Financial Accounting Foundation (FAF) was established in 1972 due to eroding confidence in the AICPA. The FAF in turn established the Financial Accounting Standards Board (FASB) and in 2009 the FASB Accounting Standard Codification (ASC) became the single authoritative source for …?

Answer 6

GAAP