The Accounting Profession Follows Generally Accepted Accounting Principles as Defined

question 192

Multiple Choice

The accounting profession follows generally accepted accounting principles as defined by

• A) 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:

Stock Exchange

A marketplace where securities, such as stocks and bonds, are bought and sold, facilitating the trade between buyers and sellers.

Public Corporation

A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over-the-counter market.

Legal Entity

An organization or business that is legally recognized as a separate entity from its owners, holding rights and responsibilities.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and rights to dividends, voting, and assets upon dissolution.