Accounting practices and procedures used to prepare financial statements are called:
A) GAAP
B) FASB
C) SEC
D) Federal Reserve System

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) refers to the standardized accounting practices and procedures that are used to prepare financial statements. FASB (Financial Accounting Standards Board) is a private organization that helps to establish GAAP. SEC (Securities and Exchange Commission) oversees the financial reporting of publicly traded companies but does not establish accounting principles. The Federal Reserve System is responsible for regulating monetary policy and banking practices in the United States.

Accounting Practices and Procedures Used to Prepare Financial Statements Are