Intermediate Accounting I Exam 1 Questions and answers with Complete Solutions | 100% Pass

What does the FASB stand for and do? - Financial Accounting Standards Board: They follow a due process so all stakeholders (investors, auditors, and companies) have a chance to provide input, thereby making standards that are generally accepted What does SEC stand for and do? - Securities and Exchange Commission: They oversee FASB but have a political bias. They have the final say but generally let FASB create the standards What are the 4 financial statements? - 1. Income Statement 2. Statement of Owner's equity (Statement of RE) 3. Balance Sheet 4. Statement of Cash Flows Income statement answers... - How successful a company is at generating revenue and controlling expenses Statement of owner's equity answers... - How much compensation was distributed to the owners and has the equity ow owners increased or decreased over the year Balance sheet answers... - What does a company own (assets) and owe (liabilities) at a certain point in time