Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
Parties involved in standard setting |
SEC, AICPA, FASB |
|
SEC |
Securities and Exchange commission |
|
AICPA |
American Institute of CPAs |
|
GAAP |
Generally Accepted Accounting Principles (FASB) |
|
Issues in financial reporting |
political environment, expectations gap etc. |
|
Essential characteristics of accounting |
identification, measurements, and communication of financial reports, economic entities and interested parties |
|
Managerial Accounting |
needed by management to plan, control, and evaluate a company's operations |
|
Decision-usefulness |
company's ability to generate net cash inflows, management's ability to protect and enhance investments |
|
Accrual-basis accounting |
records events that change financial statements in the period they occurred |
|
What is SEC? |
help develop and standardize financial information presented to stockholders, companies on stock exchange must submit financial statements |
|
Sarbanes-Oxley Act |
established oversight board because of accounting scandals, ex. enron |
|
Two acceptable for international use |
GAAP, IFRS |
|
3 fundamental considerations |
improvement in financial reporting, simplification of accounting literature and rule-making process, international convergence |