WGU Intermediate Accounting I – GAAP, FASB & Accounting
Standards Exam Study Guide Verified Questions with a+
Graded Rationales Latest Updated 2026
Accounting Principles Вoard (APB).
An accounting rule-making board which provided official pronouncements, called APB Opinions,
from 1959 through 1973.
Accounting Research Bulletins (ARBS).
Pronouncements issued by CAP dealing with a variety of timely accounting problems during the
years 1939 to 1959.
Accounting Standards Executive Committee (AcSEC)
The senior technical committee that was authorized to speak for the AICPA in the area of
financial accounting and reporting.
Accounting Standards Updates
These Updates amend the Accounting Standards accounting standards, other than standards
issued by the Codification, which represents the source of authoritative SEC
American Institute of Certified Public Accountants (AICPA).
The national professional organization of practicing Certified Public Accountants.
APB Opinions.
The APB's official pronouncements issued from 1959 through 1973 which were intended to be
based mainly on research studies and be supported by reasons and analysis.
The Codification
Created by the FASB and provides in one place all the authoritative literature to a particular
topic of GAAP
Committee on Accounting Procedure (CAP)
An organization composed of practicing CPAS which issued Accounting Research Bulletins
dealing with a variety of accounting problems during the years 1939 to 1959.
Emerging Issues Task Force (EITF).
,Created by the FASB with the purpose of having members reach a consensus on how to account
for new and unusual financial transactions that have the potential for creating differing financial
reporting practices.
Emerging Issues Task Force Statements.
Pronouncements issued by the EITF which examine emerging financial reporting issues and
state how to account for new and unusual accounting transactions
Financial Accounting Concepts.
A series of pronouncements issued by the FASB with the concepts that the FASB will use in
developing future purpose of setting forth fundamental objectives and standards of financial
accounting and reporting.
Financial Accounting Foundation.
The organization that selects the members of the FASB and the FASAC, funds their activities, and
generally oversees the FASB's activities.
Financial Accounting Interpretations.
Pronouncements issued by the FASB which represent modifications or extensions of existing
standards.
Financial Accounting Standards.
Pronouncements issued by the FASB which are considered generally accepted accounting
principles.
Financial Accounting Standards Advisory Council (FASAC)
A council responsible for consulting with the FASB on both major policy and technical issues.
Financial Accounting Standards Board (FASB)
A seven member board created in 1973 which currently establishes and improves standards of
financial accounting and reporting for the guidance and education of the public.
Generally accepted accounting principles (GAAP)
A common set of standards and procedures adopted by the accounting profession.
Internal Controls
A system of checks and balances designed to prevent and detect fraud and errors.
International Accounting Standards Board (IASB)
, Based in London, it produces the International Financial Reporting Standards (IFRS).
International Financial Reporting Standards (IFRS)
Standards created by the London-based International Accounting Standards Board (IASB) that
along with GAAP are accepted for international use.
Public Company Accounting Oversight Board (PCAOB)
Established by the Sarbanes-Oxley Act of 2002 and has auditing, quality control, and
independence standards and oversight and enforcement authority and establishes rules.
Sarbanes-Oxley Act of 2002
Passed by Congress in response to accounting scandals like Enron, Cendant, Sunbeam, Rite-Aid
and WorldCom.
Securities and Exchange Commission (SEC).
An agency of the federal government that administers the Securities Exchange Act of 1934
Assets.
Probable future economic benefits obtained or controlled bv a particular entity as a result of
past transactions or events.
Comparability
Ability to compare accounting information of different companies because they measure and
report information in a similar manner.
Comprehensive income.
Change in equity (net assets) of an entity during a period from transactions and other events
and circumstances from nonowner sources.
Conceptual framework.
A coherent system of interrelated objectives and fundamentals that can lead to consistent
standards
Confirmatory value.
Information that confirms or corrects prior expectations.
Completeness
All information necessary for faithful representation is provided.
Standards Exam Study Guide Verified Questions with a+
Graded Rationales Latest Updated 2026
Accounting Principles Вoard (APB).
An accounting rule-making board which provided official pronouncements, called APB Opinions,
from 1959 through 1973.
Accounting Research Bulletins (ARBS).
Pronouncements issued by CAP dealing with a variety of timely accounting problems during the
years 1939 to 1959.
Accounting Standards Executive Committee (AcSEC)
The senior technical committee that was authorized to speak for the AICPA in the area of
financial accounting and reporting.
Accounting Standards Updates
These Updates amend the Accounting Standards accounting standards, other than standards
issued by the Codification, which represents the source of authoritative SEC
American Institute of Certified Public Accountants (AICPA).
The national professional organization of practicing Certified Public Accountants.
APB Opinions.
The APB's official pronouncements issued from 1959 through 1973 which were intended to be
based mainly on research studies and be supported by reasons and analysis.
The Codification
Created by the FASB and provides in one place all the authoritative literature to a particular
topic of GAAP
Committee on Accounting Procedure (CAP)
An organization composed of practicing CPAS which issued Accounting Research Bulletins
dealing with a variety of accounting problems during the years 1939 to 1959.
Emerging Issues Task Force (EITF).
,Created by the FASB with the purpose of having members reach a consensus on how to account
for new and unusual financial transactions that have the potential for creating differing financial
reporting practices.
Emerging Issues Task Force Statements.
Pronouncements issued by the EITF which examine emerging financial reporting issues and
state how to account for new and unusual accounting transactions
Financial Accounting Concepts.
A series of pronouncements issued by the FASB with the concepts that the FASB will use in
developing future purpose of setting forth fundamental objectives and standards of financial
accounting and reporting.
Financial Accounting Foundation.
The organization that selects the members of the FASB and the FASAC, funds their activities, and
generally oversees the FASB's activities.
Financial Accounting Interpretations.
Pronouncements issued by the FASB which represent modifications or extensions of existing
standards.
Financial Accounting Standards.
Pronouncements issued by the FASB which are considered generally accepted accounting
principles.
Financial Accounting Standards Advisory Council (FASAC)
A council responsible for consulting with the FASB on both major policy and technical issues.
Financial Accounting Standards Board (FASB)
A seven member board created in 1973 which currently establishes and improves standards of
financial accounting and reporting for the guidance and education of the public.
Generally accepted accounting principles (GAAP)
A common set of standards and procedures adopted by the accounting profession.
Internal Controls
A system of checks and balances designed to prevent and detect fraud and errors.
International Accounting Standards Board (IASB)
, Based in London, it produces the International Financial Reporting Standards (IFRS).
International Financial Reporting Standards (IFRS)
Standards created by the London-based International Accounting Standards Board (IASB) that
along with GAAP are accepted for international use.
Public Company Accounting Oversight Board (PCAOB)
Established by the Sarbanes-Oxley Act of 2002 and has auditing, quality control, and
independence standards and oversight and enforcement authority and establishes rules.
Sarbanes-Oxley Act of 2002
Passed by Congress in response to accounting scandals like Enron, Cendant, Sunbeam, Rite-Aid
and WorldCom.
Securities and Exchange Commission (SEC).
An agency of the federal government that administers the Securities Exchange Act of 1934
Assets.
Probable future economic benefits obtained or controlled bv a particular entity as a result of
past transactions or events.
Comparability
Ability to compare accounting information of different companies because they measure and
report information in a similar manner.
Comprehensive income.
Change in equity (net assets) of an entity during a period from transactions and other events
and circumstances from nonowner sources.
Conceptual framework.
A coherent system of interrelated objectives and fundamentals that can lead to consistent
standards
Confirmatory value.
Information that confirms or corrects prior expectations.
Completeness
All information necessary for faithful representation is provided.
