Accounting Principles Board (APB) Private standard-setting organization from 1959 to 1973, whose mission was to develop an overall conceptual framework. Its official pronouncements, called APB Opinions, were to be based mainly on research studies and be supported by reasons and analysis. The APB is...
ACG 3131 Chapter 1 Questions and
Correct Answers
Accounting Principles Board (APB) ✅Private standard-setting organization from 1959
to 1973, whose mission was to develop an overall conceptual framework. Its official
pronouncements, called APB Opinions, were to be based mainly on research studies
and be supported by reasons and analysis. The APB issued 31 opinions in its lifetime.
Accounting Research Bulletins ✅Fifty-one bulletins from the Committee on Accounting
Procedure (CAP) during the years 1939 to 1959, issued to deal with accounting
problems as they arose. Subsequently, the AICPA created the Accounting Principles
Board to provide a structured body of accounting principles.
Accounting Standards Updates ✅The products of standard-setting (e.g., FASB
standards and EITF consensuses) included in the FASB Codification. The Updates
include the background and basis for conclusions for the new pronouncement in a
common format, regardless of the form in which such guidance may have been issued.
Updates are also issued for amendments to the SEC content in the Codification.
accrual-basis accounting ✅Accounting approach, in which a company records events
that change its financial statements in the periods in which the events occur, rather than
only in the periods in which it receives or pays cash. Thus, a company recognizes
revenue when it satisfies a performance obligation rather than when it receives cash,
and it recognizes expenses when it incurs them rather than when it pays them.
American Institute of Certified Public Accountants (AICPA) ✅The national professional
organization of practicing Certified Public Accountants (CPAs), whose various
committees and boards have been an important contributor to the development of
GAAP.
APB Opinions ✅The official pronouncements of the Accounting Principles Board,
intended to be based mainly on research studies and be supported by reasons and
analysis. Between its inception in 1959 and its dissolution in 1973, the APB issued 31
opinions.
Auditing Standards Board ✅The arm of the AICPA that had been responsible for
developing auditing standards. The Public Company Accounting Oversight Board,
established by the Sarbanes-Oxley Act, now oversees the development of auditing
standards.
Committee on Accounting Procedure (CAP) ✅Committee established by the AICPA in
1939 at the urging of the SEC to deal with accounting problems. The CAP issued 51
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