Financial Accounting Standards Board (FASB)

May 19th, 2015
Studypool Tutor
California State University - Bakersfield
Course: general
Price: $5 USD

Tutor description

, the Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.

Word Count: 3160
Showing Page: 1/8
ACCOUNTING PRINCIPLES There are general rules and concepts that govern the field of accounting. These general rulesreferred to as basic accountingprinciples and guidelinesform the groundwork on which more detailed, complicated, and legalistic accounting rules are based. For example, theFinancial Accounting Standards Board (FASB)uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards.The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices.If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparation of those statements. Further, if a company's stock is publicly traded, federal law requires the company's financial statements be audited by independent public accountants. Both the company's management and the independent accountants must certify that the financial statements and the related notes to the financial statements have been prepared in accordance with GAAP.GAAP is exceedingly useful because it attempts to standardize and regulate accounting definitions, assump

Review from student

Studypool Student
" Excellent work as usual "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1820 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors