Which of the following is not true of accounting principles?
A) Financial accountants follow generally accepted accounting principles (GAAP).
B) Following GAAP allows accounting information users to compare one company to another.
C) A new accounting principle can be adopted with stockholders' approval.
D) The Financial Accounting Standards Board (FASB) has primary responsibility for developing accounting principles.

Question

Quizplus · Accepted Answer

A new accounting principle cannot be adopted with stockholders' approval alone. It must be approved and enforced by the appropriate regulatory bodies, such as the Financial Accounting Standards Board (FASB) in the United States.

Which of the Following Is Not True of Accounting Principles