The organization that presently has the primary responsibility to establish generally accepted accounting principles that are applicable to the financial statements of entities in the U.S.private sector is the
A)Accounting Principles Board
B)Securities and Exchange Commission
C)Financial Accounting Standards Board
D)Committee on Accounting Procedure

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) has been the primary organization responsible for setting generally accepted accounting principles (GAAP) for the U.S. private sector since 1973. The Accounting Principles Board (APB) and the Committee on Accounting Procedure (CAP) were earlier bodies that had a role in setting GAAP, but the FASB replaced them as the primary standard-setting organization. The Securities and Exchange Commission (SEC) oversees the FASB and has the authority to establish GAAP if needed, but it generally defers to the FASB.

The Organization That Presently Has the Primary Responsibility to Establish