The Financial Accounting Standards Board (FASB) is an independent, nonprofit organization that sets the standards for financial accounting and reporting standards for both public- and private-sector businesses in the… The expense recognition principle requires that expenses incurred match with revenues earned in the same period.

The Securities and Exchange Commission (SEC) is an independent federal agency that is charged with protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements The FASB uses a conceptual framework, which is a set of concepts that guide financial reporting

transaction — business activity or event that has an effect on financial information presented on financial statements. revenue recognition principle — principle stating that a company must recognize revenue in the period in which it is earned; it is not considered earned until a product or service has been provided. Securities and Exchange Commission (SEC) — an independent federal agency that is charged with protecting the interests of investors, regulating stock markets, and ensuring companies adhere to GAAP requirements. Financial Accounting Standards Board (FASB) — an independent, nonprofit organization that sets the standards for financial accounting and reporting standards for both public- and private-sector businesses in the….