Accounting ch 1

Public Company Accounting Oversight Board (PCAOB)

A new oversight body for the accounting profession that was established by the Sarbanes-Oxley Act.

Sarbanes-Oxley (SOX)

An act passed by Congress to restore public confidence and trust in the financial statements of companies.

Securities and Exchange Commission (SEC)

An agency of the U.S. government that has authority over the accounting and financial disclosures for companies whose shares of ownership (stock) are traded and sold to the public.

International Accounting Standards Board (IASB)

An organization that issues International Financial Reporting Standards for many countries outside the United States.

Financial statements

Financial reports that summarize the effects of events on a business.

generally accepted accounting principles (GAAP)

Generally accepted guidelines for the preparation of financial statements.

Financial Accounting Standards Board (FASB)

The authoritative body that has the primary responsibility for developing accounting principles.

Financial accounting

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records.

management (or managerial) accounting

The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies.

public accounting

The field of accounting where accountants and their staff provide services on a fee basis.

Private accounting

The field of accounting whereby accountants are employed by a business firm or a not-for-profit organization.