WGU C213 Accounting for Decision Makers Complete
Study Guide with Verified Answers
Topic: Nature and Purpose of Accounting
Definitions - Define the following terms:
1. Financial Accounting Standards Board (FASB) (was established in 1973 to
replace the previously existing accounting standards body {the
Accounting Principle Board}, which has lost its credibility with the
business community because it was seen as being completely controlled
by accountants; its 7 full-time members are from a variety of
backgrounds; is not a government agency, it is a private body established
and supported by the joint efforts of the U.S. business community,
financial analysts, and participating accountants. FASB maintains its
influence as the accounting standard-setter for the US. The FASB
decisions and rules creates GAAP {generally accepted accounting
principles}).
2. Securities and Exchange Commission (SEC) (After the stock market crash in
1929,
Congress created the SEC to regulate U.S stock exchanges. Part of the
SEC’s job is to make sure that investors are provided with full and fair
information about publicly traded companies. The SEC has been granted
by Congress specific legal authority to establish accounting standards for
companies soliciting investments funds from the American public).
3. American Institute of Certified Public Accountants (AICPA) (the label CPA
has two different uses: for individuals who are CPAs and for CPA firms.
Like other professional organizations, the AICPA is responsible for
preparing and grading the CPA examination in addition to maintaining the
, integrity of the accounting profession through its Code of Professional
Conduct).
Study Guide with Verified Answers
Topic: Nature and Purpose of Accounting
Definitions - Define the following terms:
1. Financial Accounting Standards Board (FASB) (was established in 1973 to
replace the previously existing accounting standards body {the
Accounting Principle Board}, which has lost its credibility with the
business community because it was seen as being completely controlled
by accountants; its 7 full-time members are from a variety of
backgrounds; is not a government agency, it is a private body established
and supported by the joint efforts of the U.S. business community,
financial analysts, and participating accountants. FASB maintains its
influence as the accounting standard-setter for the US. The FASB
decisions and rules creates GAAP {generally accepted accounting
principles}).
2. Securities and Exchange Commission (SEC) (After the stock market crash in
1929,
Congress created the SEC to regulate U.S stock exchanges. Part of the
SEC’s job is to make sure that investors are provided with full and fair
information about publicly traded companies. The SEC has been granted
by Congress specific legal authority to establish accounting standards for
companies soliciting investments funds from the American public).
3. American Institute of Certified Public Accountants (AICPA) (the label CPA
has two different uses: for individuals who are CPAs and for CPA firms.
Like other professional organizations, the AICPA is responsible for
preparing and grading the CPA examination in addition to maintaining the
, integrity of the accounting profession through its Code of Professional
Conduct).
