Which organization sets the accounting standards used in US financial reporting?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Accounting for Planning and Control Test 1 with our comprehensive quiz. Utilize flashcards and multiple-choice questions to solidify your understanding. Each question includes hints and detailed explanations to ensure you are exam-ready!

Multiple Choice

Which organization sets the accounting standards used in US financial reporting?

Explanation:
The key idea is that US financial reporting follows GAAP, and the standards for GAAP are issued by the Financial Accounting Standards Board. This board operates as an independent private-sector body that develops and updates accounting rules, which the SEC recognizes as authoritative for public company reporting. The other organizations serve different roles: the IRS handles tax rules, and the GAO audits and evaluates government programs rather than setting accounting standards. So, the organization that sets the accounting standards used in US financial reporting is the Financial Accounting Standards Board.

The key idea is that US financial reporting follows GAAP, and the standards for GAAP are issued by the Financial Accounting Standards Board. This board operates as an independent private-sector body that develops and updates accounting rules, which the SEC recognizes as authoritative for public company reporting. The other organizations serve different roles: the IRS handles tax rules, and the GAO audits and evaluates government programs rather than setting accounting standards. So, the organization that sets the accounting standards used in US financial reporting is the Financial Accounting Standards Board.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy