Accounting practices and procedures used to prepare financial statements are called: GAAP FASB SEC Federal Reserve...

Accounting practices and procedures used to prepare financial statements are called:

GAAP

FASB

SEC

Federal Reserve System

Solutions

Expert Solution

The correct Answer is GAAP

Generally Accepted accounting Prinicpals or GAAP are the rules, practises and policies according to which a financial statement is prepared. The Universe of Accounting is goverened by the practices and procedures as laid down in GAAP.

We need to now understand why it cannot be the other options.

FASB - Financial Accounting Standard Board is the committe which regulates the GAAP within the United States of America. It is mainly a watchdog of GAAP. as it establishes, modifies the accounting practices and principals.

SEC - Securities and Exchange Comission is the watchdog of Share markets of a country. The US Securities exchange Comissioin is responsible for enforcing laws and rules relating to trading of securities and other securities related transactions within the United states of America

Federal Reserve System -Also know as Fed or teh federal Reserve, It is the central bank of United States of America. It regulates all the banks of the country and controls the monetary system of a country by setting out the monetary policies.

jeff jeffy answered 1 year ago

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