The SEC and FASB are two organizations that are primarily responsible for establishing generally accepted accounting principles. It is true that
A) they are both governmental agencies.
B) the SEC is a private organization of accountants.
C) the SEC often mandates guidelines when no accounting principles exist.
D) the SEC and FASB rarely cooperate in developing accounting standards.

Question

Quizplus · Accepted Answer

The SEC often steps in to mandate guidelines when no accounting principles exist, while the FASB is responsible for setting those principles. The SEC is a governmental agency, while the FASB is a private organization that operates under the oversight of the SEC. The two organizations do cooperate in the development of accounting standards.

The SEC and FASB Are Two Organizations That Are Primarily