GAAP Flashcards
0
Q
What’s the purpose of GAAP?
A
To make sure all companies dealing with general public use the same general accounting principles for reporting financial information
1
Q
What does GAAP stand for?
A
generally accepted accounting principles
2
Q
What’s sec
A
Security exchange commission
3
Q
Who sets GAAP?
A
The SEC has legal authority to set GAAP they also oversee use of GAAP
4
Q
What must the gap principles be?
A
- Reverent
- Reliable
- Comparable
5
Q
Who does SEC give the task of setting GAAP?
A
FASB
6
Q
What does FASB stand for?
A
Financial accounting standards board
7
Q
What is the job of FASB
A
To set broad and specific principles
