U.S. Financial Markets Regulatory Bodies and Accounting Principles, Quizzes of Introduction to Business Management

Download U.S. Financial Markets Regulatory Bodies and Accounting Principles and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 Securities and Exchange Commission (SEC) DEFINITION 1 the agency of the U.S. government that oversees U.S. financial markets and accounting standard-setting bodies. TERM 2 Public Company Accounting Oversight Board (PCAOB) DEFINITION 2 determines auditing standards and reviews auditing firms TERM 3 Financial Accounting Standards Board (FASB) DEFINITION 3 the primary accounting standard-setting body in the United States. TERM 4 International Accounting Standards Board (IASB) DEFINITION 4 issues international financial reporting standards (IFRS) that have been adopted by many countries outside of the United States TERM 5 Generally Accepted Accounting Principles (GAAP) DEFINITION 5 Generally accepted principles you have to follow (US) TERM 6 Relevance DEFINITION 6 financial information is capable of making a difference in a decision TERM 7 Faithful Representation DEFINITION 7 that the numbers and descriptions match what really existed or happenedit is factual. TERM 8 The Cost Principle (historical cost principle) DEFINITION 8 dictates that companies record assets at their cost. This is true not only at the time the asset is purchased, but also over the time the asset is held. TERM 9 The Fair Value Principle DEFINITION 9 indicates that assets and liabilities should be reported at fair value (the price received to sell an asset or settle a liability). Fair value information may be more useful than historical cost for certain types of assets and liabilities. TERM 10 The Monetary Unit Assumption DEFINITION 10 requires that companies include in the accounting records only transaction data that can be expressed in money terms. This assumption enables accounting to quantify (measure) economic events.