Question

in 300 hundred words or more, please write, in your own words, about one of the entities that establish the rules accountants must follow when preparing financial reports. they include, but are not limited to, the Financial Accounting Standards Board (FASB), International Accounting Standards Board (IASB), and the Security Exchange Commission (SEC). please also state your opinion wether the mission of the organization you are writing on helps to provide guidance to aacountants or is repetitive of other standard-making bodies. Use at least two outside references.

Answer 1

There are various thing which should be kept in mind about creating the financial statement of a company by a Accountant that, he/she should be knowing the health of the company, through the previous years statement and by the day to day transaction occurs in the company. When we talk about small business then the accountant sees the strength and survival along with its success to determine the transaction effort, The main method used by any Accountant is GAAP, which stands for General Accepted Accounting Principle, which means the rules and regulations of the financial reporting which is handled by the United States professional accountants.

The theory of GAAP defines that the principle of keeping the records of financial statement or reporting with the standard of a particular company’s financial records which is governed in the same way which all other small or big business have to use the general method of GAAP. When a business generally uses this method of GAAP, they know that the financial reports which are very much easier for any person or any individuals to get to know about it or understands it, they get the rough idea of the delegence of the language of a business which also includes the manager , with shareholder, bankers and the investor which have that potential to invest. The only main thing that an Accountant should keep in mind is the accuracy for the financial document they ade, because the more the accurate will be on the document or the financial statement, the lesser chance it will be for any mistake, thus preparing and maintaining the inportant statement and financial reports will be helpful for the company, and also providing the tax return in a proper and chronological manner will ensure the taxes will are to be paid properly on time, thus these are some basic narration which an Accountant should keep for their less mistakes.

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