Development of Generally Accepted Accounting Principles

question 86

Essay

Development of generally accepted accounting principles
(A. )What is meant by the phrase "generally accepted accounting principles"?
(B. )Give the names of three organizations that currently play an active role in the development of accounting principles in the United States.

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Definitions:

Assignable Cause

A specific, identifiable source of variation in a process, distinct from random variation and often indicating a need for corrective action.

Inadequate Training

A situation where employees have not been provided sufficient or appropriate training to perform their jobs effectively.

Central Limit Theorem

The theoretical foundation for \(\overline{x}\)-charts, which states that regardless of the distribution of the population of all parts or services, the x distribution tends to follow a normal curve as the number of samples increases.

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.