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Unformatted text preview: CA1-1 A) Financial accounting is the process that culminates in the preperation of fina on the enterprise for use by both internal and external parties. Managerial a is the process of identifying, measuring, analyzing, and communicating finac information needed by management to plan, control, and evaluate a compan operations. B) The financila statements most frequently provided are the balance sheet, inc statement, cash flow, and statement of owners equity. C) Financial statements are the principal means through which a company com financial information to those outside it. These statements provide a compan quantified in money terms. Financial reporting is financial information better outside the financial statements. An example of financial reporting is the pre letter. CA1-7 A) The CAP was appointed in 1939 by the AICPA. The committee dealt with a accounting problems on a problem-by-problem basis. When this approach f provide the needed structure the AICPA created the APB in 1959. The APB to develop an overall conceptual framework to assist in the resolution of prob they become evident and to substantively research individual issues before t issued pronouncements. The APB only lasted until 1973 and during its exist 31 opinions. The Wheat Committee recommendations resulted in the demis APB and the FASB was created. The mission of the FASB is to establish an the standards of financial accounting and reporting for the guidance and edu the public, which includes issuers, auditors, and users of financial informatio B) Based on the above, this would support the "politicization" of accounting rule The SEC was developed by the federal government. The SEC then created committees that replaced each other when one was faiing. C) Arguments against "politicization" of accounting rule-making is the SEC and committees are not federal organizations and were not dismissed by the gov CA1-9 A) AICPA - American Institute of Certified Public Accountants is the national pro organization of practicing CPAs and is an important contributor to the develo GAAP. B) CAP - Committee on Accounting Procedure composed of practicing CPAs an ARBs from 1939-1959 dealing with a variety of accounting problems. C) ARB - Accounting Research Bulletins contained recommended accounting p D) APB - Accounting Principles Board is to advance the written expression of ac principles, determine appropriate practices, and narrow the areas of differen inconsistency in practice. E) FAF - Financial Accounting Foundation selects the members of the FASB....
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This note was uploaded on 01/13/2011 for the course ACCT AC 550 taught by Professor George during the Spring '10 term at DeVry Chicago.
- Spring '10