Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?
A)International Accounting Standards Board (IASB)
B)Financial Accounting Standards Board (FASB)
C)General Association of Accounting Practitioners (GAAP)
D)Securities Exchange Commission (SEC)

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) has the authority to set accounting rules for publicly-traded companies in the U.S. stock markets. However, it has delegated this responsibility to the Financial Accounting Standards Board (FASB), which is why the FASB develops and issues accounting standards through its accounting principles.

Which Organization Has the Power to Set Accounting Rules for Companies