Multiple Choice
According to GAAP, financial information should possess which of the following characteristics?
33
views
15. GAAP vs IFRS
GAAP vs. IFRS: Introduction
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following are the accounting standards issued by the Financial Accounting Standards Board (FASB)?
A
International Accounting Standards (IAS)
B
Generally Accepted Accounting Principles (GAAP)
C
Public Company Accounting Oversight Standards (PCAOS)
D
International Financial Reporting Standards (IFRS)
Verified step by step guidance1
Understand the role of the Financial Accounting Standards Board (FASB). FASB is responsible for establishing accounting and financial reporting standards in the United States.
Recognize that the accounting standards issued by FASB are known as Generally Accepted Accounting Principles (GAAP). These standards provide guidelines for financial reporting and ensure consistency and transparency.
Differentiate GAAP from other accounting standards mentioned in the problem. For example, International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) are issued by the International Accounting Standards Board (IASB), not FASB.
Note that Public Company Accounting Oversight Standards (PCAOS) are not issued by FASB either. These standards are overseen by the Public Company Accounting Oversight Board (PCAOB), which focuses on auditing standards for public companies.
Conclude that the correct answer is GAAP, as it is the set of accounting standards specifically issued by FASB.
7:32mWatch next
Master GAAP vs. IFRS: Introduction with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
GAAP vs. IFRS: Introduction practice set
Problem sets built by lead tutorsExpert video explanations