Match the letter of each phrase with the appropriate definition.
-Accounting principles that have substantial authoritative support.
A)Generally Accepted Accounting Principles (GAAP)
B)Securities and Exchange Commission (SEC)
C)American Institute of Certified Public Accountants (AICPA)
D)Accounting Principles Board (APB)
E)Financial Accounting Standards Board (FASB)
F)Statements of Financial Standards (SFAS)
G)Discussion Memorandum (DM)
H)Statements of Position (SOP)
I)Emerging Issues Task Force (EITF)
J)Financial Reporting Releases (FRRs)
K)The Public Company Accounting Oversight Board (PCAOB)

Question

Quizplus · Accepted Answer

Generally Accepted Accounting Principles (GAAP) are a set of accounting principles, standards, and procedures that have substantial authoritative support and are recognized as a common set of guidelines used in financial reporting.

Answer: B
 The Securities and Exchange Commission (SEC) is an independent federal regulatory agency that oversees securities markets and enforces securities laws in the United States. The SEC has the authority to establish and enforce accounting standards for public companies.

Answer: E
 The Financial Accounting Standards Board (FASB) is an independent organization established by the SEC to develop and improve financial accounting and reporting standards in the United States. FASB is responsible for maintaining and updating GAAP.

Answer: K
 The Public Company Accounting Oversight Board (PCAOB) is a nonprofit organization established by Congress to oversee the audits of public companies and other issuers in order to protect investors and the public interest.

Note: The other choices are also accounting organizations or publications, but they do not specifically relate to accounting principles with substantial authoritative support.

Match the Letter of Each Phrase with the Appropriate Definition