The Accounting Profession Follows Generally Accepted Accounting Principles as Defined

question 230

Multiple Choice

The accounting profession follows generally accepted accounting principles as defined by ___________________.

• A)the GAAP
• B)the PCAOB Public Company Accounting Oversight Board)
• C)the FASB Financial Accounting Standards Board)
• D)the Sarbanes-Oxley Act

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Definitions:

Economies Of Scale

The economical benefits that businesses gain from their operation size, typically resulting in lower costs per unit of output as the scale expands.

Specialization

The process of focusing efforts and resources on a limited number of activities to increase efficiency and productivity.

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.

Marginal Cost

The increase in cost caused by producing one additional unit of a good or service.