Early History of Accounting
Accounting in the U.S. since 1930
The FASB
Ethics in Accounting
International Accounting Standards
100
Systematically organized knowledge, applicable in a relatively wide variety of circumstances, a system of assumptions, accepted principles and rules of procedure to analyze, predict or otherwise explain the nature of behavior of a specified set of phenomena.
What is theory?
100
In 1935, this association announced its intention to expand their activities in the research and development of accounting principles and standards.
What is the American Accounting Association (AAA)?
100
This committee, known as the Study Group on Establishment of Accounting Principles, was set up to study the APB and recommend changes in its structure and operation.
What is the Wheat Committee?
100
This company used special-purpose entities (SPEs) to access capital and hedge risks.
What is Enron?
100
An independent private sector body that was formed in 1973 to achieve the purpose harmony in international accounting standards.
What is the IASB?
200
Discovered in 1915, this document contains information about the construction projects, agricultural activities, and business operations of the private estate of Apollonius for a period of about thirty years during the third century B.C
What are the Zenon papyri?
200
The American Institute of Certified Public Accountants (AICPA), the national professional organization of practicing Certified Public Accountants (CPAs), have been a catalyst in the development of these standards.
What are Generally Accepted Accounting Principles (GAAP)?
200
The result of the Wheat Committee's Study Group findings was the demise of the APB and the creation of this rule-making body.
What is the Financial Accounting Standards Board (FASB)?
200
President Bush signed this into law in July 2002, and it imposes a number of corporate governance rules on publicly traded companies.
What is the Sarbanes-Oxley Act?
200
The IASB has developed a conceptual framework titled
What is the Framework for the Preparation and Presentation of Financial Statements?
300
An Italian monk, who wrote a book in 1494 on arithmetic that included a description of double-entry bookkeeping.
Who is Fra Luca Pacioli?
300
This government agency has the mandate to establish accounting principles; however, their involvement in the development of accounting standards has varied.
What is the Securities and Exchange Commission (SEC)?
300
In 1984, the FASB created this task force whose purpose is to reach a consensus (15 of 17 members must agree) on how to account for new and unusual financial transactions that have the potential for creating diversity in financial reporting practices.
What is the Emerging Issues Task Force (EITF)?
300
This organization requires the filing of audited financial statements in order to obviate the fear of loss from reliance on inaccurate information, thereby encouraging public investment in the nation’s industries.
What is the SEC?
300
Neither of these organizations is a member of the IASB, so its standards have no authority in the United States at the present time.
What are the FASB and the SEC?
400
This concept emerged in the early 1900’s as the focus changed from keeping invested capital intact to increasing stockholders’ wealth.
What is the concept of capital maintenance?
400
This was the first group appointed by the AICPA to address the issue of uniformity in accounting practice.
What is the Committee on Accounting Procedure (CAP)?
400
This became effective on July 1, 2009 and will represent the single source of authoritative nongovernmental U.S. generally accepted accounting principles, except for rules and interpretive releases of the SEC which will remain as sources of authoritative GAAP. All other literature will be nonauthoritative.
What is FASB Codification?
400
This person outlined the very important role accountants play in our society, requiring highly ethical conduct at all times.
Who is Justice Burger?
400
The IASB had issued how many Statements of Accounting Standards (IASs) and Statements of Financial Reporting Standards (IFRSs)?
What is forty-one and ten?
500
This event changed the public’s attitude towards the business sector and the role of the accountant became a protector of business interests.
What is World War I?
500
In 1959, the AICPA created this organization whose major purposes were (a) to advance the written expression of accounting principles, (b) to determine appropriate practices, and (c) to narrow the areas of difference and inconsistency in practice.
What is the Accounting Principles Board (APB)?
500
These groups influence the standard-setting process because of their expressed interest in accounting, their extensive use of the reports generated by the accounting process, or both.
What is the American Accounting Association (AAA), the Institute of Management Accountants (IMA), the Financial Executives Institute (FEI) and the Internal Revenue Service (IRS)?
500
These documents are one of the primary sources of information available to guide the decisions of the investing public.
What are corporate financial statements?
500
This organization recently ruled that foreign companies that adopt IASB standards are eligible to list their securities for sale on U.S. stock exchanges.
What is the SEC?
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