Fasb And Standard Setting

Front 1

What is the American institute of certified public accounts aicpa

Back 1

The professional organization for participating CPAs

Front 2

What does a securities and exchange commission SEC do

Back 2

The SEC administers the security laws of the United States, these laws affect firms that issue debt and equity security to the public

Front 3

What are registrants

Back 3

Firms register with the SEC and are called restraints

Hint 3

the financial statement of these firms must be filed with SEC it must be audited by independent third parties CPA firms

Front 4

What comprises United States generally accepted accounting principles

Back 4

The accounting standards codification and the SEC pronouncements comprise of gap for publicly traded entities

Hint 4

Authoritative GAAP literature can be found where?

Front 5

What is the role of the financial accounting foundation or FAF

Back 5

It exercises oversight of the FASB and appoints the members and ensures funding

Front 6

What is the financial accounting standards board or fasB

Back 6

It establishes financial accounting standards for business entities

Front 7

What is the role of the financial accounting advisory council FASAC

Back 7

Provides guidance of major policy issues project priorities and the formation of task forces

Front 8

How many steps does it take to issue an ASU

Back 8

Six steps

Front 9

What are the first three steps when FASB uses when issuing a new accounting standard

Back 9

1) consult with faf whether to add a project to its agenda

2) conduct research

3) holds a public hearing on the topic

Front 10

What are the final three steps in the standard setting process

Back 10

4) evaluate research and comment from interested parties and issue and exposure graph

5) solicit additional comments

6) finalize new accounting guidance and issuing accounting standards update, ASU

Front 11

How do users influence the outcome of the FASB standard

Back 11

They do so by providing inputs during the due process procedure

Front 12

What is GAAP

Back 12

The rules of financial reporting for business enterprises GAAP is also called accounting standards

Front 13

Is the term recognition an accounting concept or an economic concept

Back 13

Accounting

Hint 13

It indicates that the item is recorded on the financial statements, focuses on accrual accounting and therefore is concerned with recognition more than with realization

Front 14

Is realization an economic concept or an accounting concept

Back 14

Economic concept

Hint 14

In the case that cash is paid or received

Front 15

Is FASB a governmental unit

Back 15

No, it's a private sector body

Hint 15

Manages securities

Front 16

What kind of account is created when the economic event occurs first

Deferral

Accrual

Back 16

Accrual

Front 17

What kind of account is created when Cash activity occurs first

Accrual

Deferral

Back 17

Deferral

Front 18

GAAP addresses three aspects of financial reporting

Back 18

Recognition, when recorded

Measurement, how recorded

Disclosure, anything that is not captured on the financial statements

Front 19

What private sector creates GAAP?

Back 19

FASB