In descending order, the hierarchy of GAAP applicable to a church-owned college may be:
A) FASB Statements and Interpretations, AICPA Accounting Research Bulletins, Accounting Principles Board Opinion, FASB Technical Bulletins, AICPA Industry Audit Guides, FASB Implementation Guides, other accounting literature-including GASB standards.
B) FASB Statements and Interpretations, GASB standards, AICPA Practice Bulletins (if cleared by FASB).
C) GASB Statements and Interpretations, AICPA Industry Audit Guides, GASB Implementation Guides, other accounting literature-including FASB standards.
D) GASB Statements and Interpretations, GASB Technical Bulletins, AICPA Industry Audit Guides, AICPA Practice Bulletins (if cleared by GASB), GASB Implementation Guides, other accounting literature-including FASB standards.

Question

In descending order, the hierarchy of GAAP applicable to a church-owned college may be: 
A) FASB Statements and Interpretations, AICPA Accounting Research Bulletins, Accounting Principles Board Opinion, FASB Technical Bulletins, AICPA Industry Audit Guides, FASB Implementation Guides, other accounting literature-including GASB standards.
B) FASB Statements and Interpretations, GASB standards, AICPA Practice Bulletins (if cleared by FASB).
C) GASB Statements and Interpretations, AICPA Industry Audit Guides, GASB Implementation Guides, other accounting literature-including FASB standards.
D) GASB Statements and Interpretations, GASB Technical Bulletins, AICPA Industry Audit Guides, AICPA Practice Bulletins (if cleared by GASB), GASB Implementation Guides, other accounting literature-including FASB standards.

Quizplus · Accepted Answer

The correct choice is A because the Financial Accounting Standards Board (FASB) sets accounting standards for private sector organizations, including non-profit entities like a church-owned college. The hierarchy starts with FASB Statements and Interpretations and includes various levels of authoritative literature down to other accounting literature, including Governmental Accounting Standards Board (GASB) standards for informational purposes. GASB standards primarily apply to governmental entities, not private sector organizations.

In Descending Order, the Hierarchy of GAAP Applicable to a Church-Owned