D196 Study Guide

Unit 2: International Accounting Standards Board (IASB) - Answer- A committee formed to develop international accounting standards. Unit 2: American Institute of Certified Public Accountants (AICPA) - Answer- A professional organization for CPAs in which membership is voluntary. *Professional Sanctions* Unit 2: Certified public accountant (CPA) - Answer- An accountant who has met specified professional requirements established by the AICPA and local and state societies. A key service provided by CPAs is the performance of independent audits of financial statements. Unit 2: Securities and Exchange Commission (SEC) - Answer- The government body responsible for regulating the financial reporting practices of most publicly owned corporations in connection with the buying and selling of stocks and bonds. *Legal Punishment* Unit 2: Governmental Accounting Standards Board (GASB) - Answer- An independent private organization that sets the accounting and financial reporting standards for state and local governments following GAAP. Unit 2: Generally accepted accounting principles (GAAP) - Answer- Authoritative guidelines that define accounting practice at a particular time in the United States. Unit 2: Financial Accounting Standards Board (FASB) - Answer- the private board that establishes the generally accepted accounting principles used in the practice of financial accounting variety of backgrounds not a government agency - no legal power to enforce the accounting standards Unit 2: accounting system - Answer- The procedures and processes used by a business to analyze transactions, handle routine bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the business. Unit 2: Accounting - Answer- Quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions. Unit 2: Quantitative - Answer- Accounting relates to numbers. Unit 2: Financial - Answer- The health and performance of a business are affected by and reflected in many dimensions