Which of the following organizations was established by the federal government to help develop and standardize financial information presented to stockholders?
A) AICPA (American Institute of Certified Public Accountants).
B) SEC (Securities and Exchange Commission).
C) FASB (Financial Accounting Standards Board).
D) CAP (Committee on Accounting Procedure)

Question

Quizplus · Accepted Answer

The SEC was established by the federal government to protect investors and ensure the disclosure of reliable and accurate financial information to the public. One of its responsibilities is to develop and enforce accounting standards for publicly traded companies. While the other organizations listed (AICPA, FASB, CAP) play important roles in accounting and financial reporting, they were not established by the federal government for the specific purpose of developing and standardizing financial information presented to stockholders.

Which of the Following Organizations Was Established by the Federal