Congress
A) has legally barred the SEC from interfering with the work of the FASB.
B) is restricted from holding hearings concerning the accounting profession.
C) gave the SEC the power to establish accounting principles for corporations whose stock is sold and traded to the general public.
D) appoints two of the five members of the FASB.

Question

Quizplus · Accepted Answer

The Securities Act of 1933 and the Securities Exchange Act of 1934 gave the SEC the power to establish accounting principles for corporations whose stock is sold and traded to the general public. The FASB is designated to set accounting standards for private companies, but Congress has not legally barred the SEC from interfering with their work. Congress also has the power to hold hearings concerning the accounting profession, so choice B is incorrect. Congress appoints only one member of the FASB, not two, so choice D is also incorrect.