Financial Accounting Standards

Question 1

Generally Applied Accounting Principles (GAAP)

Answer 1

set of both broad and specific guidelines that companies should follow when measuring and reporting the information in their financial statements and related notes

Question 2

Securities Exchange Committee (SEC)

Answer 2

has the authority to set accounting standards for companies but it relies on the private sector to do so

Question 3

Committee on Accounting Procedure (CAP)

Answer 3

first private sector body that was delegated the task of setting accounting standards

Question 4

Accounting Principles Board

Answer 4

second private body sector body delegated the task of setting accounting standards

Question 5

Financial Accounting Standards Board (FASB)

Answer 5

the current private body sector that has been delegated the task of setting accounting standards

Question 6

International Accounting Standards Board (IASB)

Answer 6

objective are to develop a single set of high quality, understandable GLOBAL accounting standards, promote the use.., and to bring about the convergence…

Question 7

American Institute of Accountants (AIA)
later renamed AICPA

Answer 7

national organization of professional public accountants

Question 8

Financial Accounting Foundation (FAF)

Answer 8

responsible for selecting the members of the FASB and its advisory council, ensuring adequate funding of FASB activities, and exercising general oversight of the FASB’s activities

Question 9

Emerging Issues Task Force (EITF)

Answer 9

responsible for providing responses to emerging financial reporting issues