Question

How would you explain the difference between the SEC, the IRS, and the FASB to someone who has never studied accounting or the financial markets?

Answer 1

S.No.	SEC	IRS	FASB
1)	Full form of SEC is Securities and Exchange Commission	Full form of IRs is Internal Revenue Service	Full Form of FASB is Financial Accounting Standard Board
2)	It is an independent Federal Government Agency.	It is the Nation’s tax collection Agency.	It is an independent entity in the United States.
3)	It is responsible for protecting investors; maintain fair and orderly functioning of securities market.	The IRS responsible for collecting taxes and administering the internal revenue code.	It is responsible for generally accepted accounting principles in the United States.
4)	The Securities and Exchange commission has five commissioners who are appointed by the President of the United States with the advice and consent of the senate.	The commissioner is appointed by the President with the consent of senate.	FASB members are appointed by the Financial Accounting Foundation Board of Trustees.