18 Questions
What is the primary purpose of accounting principles?
To provide uniformity in financial reporting
What is a characteristic of accounting principles?
They are flexible and evolve over time
What is the role of accounting standard-setting bodies?
To develop and enforce accounting principles
What is the relationship between accounting principles and guidelines?
Guidelines are a subset of accounting principles
What is the significance of Generally Accepted Accounting Principles (GAAP)?
It is a mandatory framework for financial reporting in the US
How do accounting principles influence financial statements?
They provide a framework for financial reporting, shaping the content and structure of financial statements
What is the primary purpose of GAAP?
To standardize and regulate accounting definitions, assumptions, and methods
Which of the following is a requirement for companies listed on major stock exchanges in Nigeria?
Filing financial statements reported according to GAAP
What is the role of independent public accountants in the preparation of financial statements?
To audit financial statements and certify their compliance with GAAP
What is the consequence of not following GAAP in financial statement preparation?
The company may be subject to penalties and sanctions
What is the primary benefit of GAAP in financial reporting?
It increases the comparability and consistency of financial statements
Who is responsible for certifying that financial statements have been prepared in accordance with GAAP?
Both the company's management and the independent public accountants
What is the primary role of accounting standard-setting bodies?
Establishing Generally Accepted Accounting Principles
Which of the following international organizations issues IFRS?
International Accounting Standards Board
What is the primary function of professional bodies in the accounting profession?
Lobbying governments and providing a framework for self-regulation
Which country has the Autorité des Normes Comptables (ANC) as its accounting standard-setting body?
France
What is the name of the accounting standard-setting body in India?
National Advisory Committee on Accounting Standards
What is the name of the international organization that issues IPSAS for Government/Public entities accounting?
International Public Sector Accounting Standards Board
Test your understanding of accounting standard-setting bodies, their roles, and responsibilities. Learn about the different national and international organizations that set Generally Accepted Accounting Principles (GAAP) in various countries and jurisdictions.
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