BBK99E1 BASIC BOOKKEEPING LEVEL 1 FINAL
EXAM PRACTICAL ANSWERS 2026 FULL
PRACTICE TEST
◉ Need for auditing standards. Answer: Periodic assessments
Separation of ownership and management
Third party examination and attestation
◉ Interested parties. Answer: Creditors
Employees
Taxing authorities
Regulators
◉ FASB. Answer: Financial Accounting Standards Board is a private
entity that promulgates financial accounting standards. It was
created in 1973 by an initiative of the biggest accounting firms.
Accountant professionals historically dominate the board. Problem
with this is that accountants who are subject to these rules
promulgate them.
◉ SOX 2002. Answer: First amendment of securities law that created
official recognition of FASB by Congress. It says that the SEC is
, authorized to recognize a private standard setting board and that is
FASB
◉ The "players" in accounting. Answer: FASB (financial accounting
standards board)
SEC (Securities Exchange commission)
Congress
Stock exchanges (NYSE)
IASB (IFRS: International Financial reporting standards)
(International accounting standards board)
PCAOB (Public company accounting oversight board)
AICPA (American institute of certified public accountants)
◉ IASB. Answer: International Accounting Standards Board
(sometimes called IFRS) is the international accounting part of FASB.
It is also dominated by accounting firms but has a mission of
creating accounting standards for the entire world. It requires all
publicly traded firms to use IASB, except those in the U.S.
◉ PCAOB. Answer: Public Company Accounting Oversight Board sets
audit standards
◉ Applicable accounting standards for publicly traded firms.
Answer: GAAP
EXAM PRACTICAL ANSWERS 2026 FULL
PRACTICE TEST
◉ Need for auditing standards. Answer: Periodic assessments
Separation of ownership and management
Third party examination and attestation
◉ Interested parties. Answer: Creditors
Employees
Taxing authorities
Regulators
◉ FASB. Answer: Financial Accounting Standards Board is a private
entity that promulgates financial accounting standards. It was
created in 1973 by an initiative of the biggest accounting firms.
Accountant professionals historically dominate the board. Problem
with this is that accountants who are subject to these rules
promulgate them.
◉ SOX 2002. Answer: First amendment of securities law that created
official recognition of FASB by Congress. It says that the SEC is
, authorized to recognize a private standard setting board and that is
FASB
◉ The "players" in accounting. Answer: FASB (financial accounting
standards board)
SEC (Securities Exchange commission)
Congress
Stock exchanges (NYSE)
IASB (IFRS: International Financial reporting standards)
(International accounting standards board)
PCAOB (Public company accounting oversight board)
AICPA (American institute of certified public accountants)
◉ IASB. Answer: International Accounting Standards Board
(sometimes called IFRS) is the international accounting part of FASB.
It is also dominated by accounting firms but has a mission of
creating accounting standards for the entire world. It requires all
publicly traded firms to use IASB, except those in the U.S.
◉ PCAOB. Answer: Public Company Accounting Oversight Board sets
audit standards
◉ Applicable accounting standards for publicly traded firms.
Answer: GAAP
