Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

Financial Accounting

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

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Multiple Choice

Which of the following best describes GAAP and the organization responsible for overseeing its development in the United States?

GAAP stands for Governmental Accounting and Auditing Practices and is overseen by the International Accounting Standards Board (IASB).

GAAP stands for General Accounting and Auditing Policies and is overseen by the Securities and Exchange Commission (SEC).

GAAP stands for Generally Accepted Auditing Principles and is overseen by the Public Company Accounting Oversight Board (PCAOB).

GAAP stands for Generally Accepted Accounting Principles and is overseen by the Financial Accounting Standards Board (FASB).

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Verified step by step guidance

Step 1: Understand the acronym GAAP, which stands for Generally Accepted Accounting Principles. It represents a set of rules and standards used in financial accounting to ensure consistency, reliability, and comparability of financial statements.

Step 2: Recognize the organization responsible for overseeing GAAP in the United States. This is the Financial Accounting Standards Board (FASB), which develops and updates these principles to reflect changes in the business environment and accounting practices.

Step 3: Eliminate incorrect options by analyzing the definitions provided. For example, GAAP does not stand for Governmental Accounting and Auditing Practices, nor is it overseen by the International Accounting Standards Board (IASB).

Step 4: Similarly, GAAP does not stand for General Accounting and Auditing Policies, nor is it overseen by the Securities and Exchange Commission (SEC). The SEC enforces compliance with GAAP but does not develop it.

Step 5: Finally, GAAP does not stand for Generally Accepted Auditing Principles, nor is it overseen by the Public Company Accounting Oversight Board (PCAOB). The PCAOB focuses on auditing standards, not accounting principles. The correct description is that GAAP stands for Generally Accepted Accounting Principles and is overseen by the Financial Accounting Standards Board (FASB).