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1. What is the mission of the Financial Accounting Standard Board (FASB) 2. What are GAAP?...

1. What is the mission of the Financial Accounting Standard Board (FASB)

2. What are GAAP? Why do we need to ponder over the levels of GAAP to do accounting work?

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Expert Solution

1. The mission of the Financial Accounting Standard Board (FASB) is to establish financial accounting and reporting standards for public, private companies and not-for-profit organizations which follow Generally Accepted Accounting Principles (GAAP).

2. Generally Accepted Accounting Principles, here referred to as GAAP, are the common set of accounting principles, policies and standards that companies and organizations must follow while maintaining their books of accounts. GAAP helps investors to evaluate the companies by reviewing their financial statements. GAAP also helps companies to get an insight of its key performances and practices. So, we need to ponder over the levels of GAAP to do accounting work as GAAP is a set of rules for details, complexities and legalities of accounting.

ekkarill92 answered 2 years ago
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