What Are the Organizations and Rules That Govern Accounting.pdf

What Are the Organizations and Rules That Govern Accounting? 1. Financial Accounting Standards Board (FASB): The private organization that oversees the creation and governance of accounting standards in the United States. 2. Securities and exchange Commission (SEC):U.S....

What Are the Organizations and Rules That Govern Accounting? 1. Financial Accounting Standards Board (FASB): The private organization that oversees the creation and governance of accounting standards in the United States. 2. Securities and exchange Commission (SEC):U.S. governmental agency that oversees the U.S. financial markets. 3. Generally Accepted Accounting principles (GAAP): Accounting guidelines, currently formulated by the Financial Accounting Standards Board (FASB): the main U.S. accounting rule book. 4. Economic Entity Assumption: An organization that stands apart as a separate economic unit. 5. Cost principle: A principle that states that acquired assets and services should be recorded at their actual cost. 6. Sole proprietorship: A business with a single owner. 7. Partnership: A business with two or more owners and not organized as a corporation. 8. Corporation: A business organized under state law that is a separate legal entity 9. Limited-Liability Company (LLC): A company in which each member is only liable for his or her own actions. 10. Going Concern Assumption: Assumes that the entity will remain in operation for the foreseeable future. 11. Monetary Unit Assumption: The assumption that requires the items on the financial statements to be measured in terms of a monetary unit. 12. International Financial reporting Standards (IFRS): A set of global accounting guidelines, formulated by the International Accounting Standards Board (IASB). 13. International Accounting Standards Board (IASB): The private organization that oversees the creation and governance of International Financial Reporting Standards (IFRS). 14. Audit: An examination of a company’s financial statements and records 15. Sarbanes-Oxley Act (SOX): Requires companies to review internal control and take responsibility for the accuracy and completeness of their financial reports.