Accounting practices and procedures used to prepare financial statements are called:
A)GAAP
B)FASB
C)SEC
D)Federal Reserve System
E)none of the above

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) is a set of accounting practices and procedures used to prepare financial statements in the United States. It is important for companies to follow GAAP to ensure their financial statements accurately represent their financial position and performance. FASB (Financial Accounting Standards Board) is a private, nonprofit organization that establishes GAAP. The SEC (Securities and Exchange Commission) is a regulatory agency that oversees financial reporting by public companies in the United States. The Federal Reserve System is responsible for regulating monetary policy and promoting stability in the financial system, but does not play a direct role in accounting practices for financial statements.

Accounting Practices and Procedures Used to Prepare Financial Statements Are