Three Organizations Important to Accounting Are Listed Below

question 191

Multiple Choice

Three organizations important to accounting are listed below.Select the organization that most closely achieves the role described.
-Has the ultimate authority to set accounting standards, but has allowed the profession to do so.

• A)American Institute of Certified Public Accountants (AICPA)
• B)Financial Accounting Standards Board (FASB)
• C)Securities and Exchange Commission (SEC)

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Definitions:

Externalities

Effects a project has on other parts of the firm or on the environment.

Cash Flow Estimation

The process of forecasting the cash inflows and outflows over a specific period, vital for budgeting and financial planning.

Cash Flows

The complete volume of financial transactions in and out of a business, crucially influencing its cash on hand.

Subjective Judgment

The use of personal opinions and feelings rather than external evidence or objective criteria to make decisions or evaluations.