16 Questions
What is the default accounting standard used by companies based in the United States?
U.S. GAAP
Who publishes and maintains the Accounting Standards Codification (ASC), which is the single source of authoritative nongovernmental U.S. GAAP?
FASB
What is the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities?
FASB
Which organization issues Staff Accounting Bulletins that represent practices followed by the staff in administering SEC disclosure requirements?
SEC
Who utilizes SEC Staff Announcements and Observer comments made at Emerging Issues Task Force meetings to publicly announce its views on certain accounting issues for SEC registrants?
SEC
In which year did the FASB publish U.S. GAAP in Extensible Business Reporting Language (XBRL)?
2008
What is the purpose of an Accounting Standards Update (ASU)?
To communicate changes to the FASB Codification, including changes to non-authoritative SEC content
Which principle requires companies to account and report assets and liabilities acquisition costs rather than fair market value?
Historical cost principle
What does the Time-period principle imply?
Economic activities of an enterprise can be divided into artificial time periods
What does the Business Entity assumption assume?
The business is separate from its owners or other businesses
What does the Revenue recognition principle hold?
Companies should record revenue when earned
Which assumption validates the methods of asset capitalization, depreciation, and amortization?
Going Concern assumption
What is the purpose of FASB Concepts Statements?
To define the underlying concepts and principles used in accounting standards
What are ASUs?
Updates to the FASB Codification, including changes to non-authoritative SEC content
What does the Monetary Unit principle assume?
A stable currency is going to be the unit of record
What is not applicable under the Going Concern assumption?
When liquidation is certain
Test your knowledge about Generally Accepted Accounting Principles (GAAP) and the role of the Financial Accounting Standards Board (FASB) in maintaining accounting standards in the United States.
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