Question

Suppose you are starting a​ business, Wholly​ Shirts, to imprint logos on​ T-shirts. In organizing the business and setting up its accounting​ records, you take your information to a CPA to prepare financial statements for the bank. Name the organization that governs the majority of the guidelines that the CPA will use to prepare financial statements for Wholly Shirts. What are those guidelines​ called?

Answer 1

Answer:

The correct answer is:

The organization is called

Financial Accounting Standards Board.

The guidelines are called

Generally accepted accounting principles

that the CPA will use to prepare Wholly Shirts financial statements.

Explanation:

The FASB is an organization that provides guidelines for financial reports. The mission of the Council for Financial Accounting Standards (FASB) is to establish and improve financial accounting standards and the way of reporting; using public education, including issuers, auditors and other users of financial information.

The generally accepted accounting principles are a set of rules and norms that serve as an accounting guide to formulate criteria related to the measurement of equity and to the information of the patrimonial and economic elements of an entity.