_____ Which statement is correct for governmental units?
A) The SEC requires GAAP to be followed.
B) Federal legislation requires GAAP to be followed.
C) Federal legislation requires all governmental units to be audited at least every three years.
D) Each of the 50 states has laws requiring GAAP to be followed.
E) None of the above.

Question

Quizplus · Accepted Answer

The correct statement for governmental units is not among the options provided. The SEC's requirements for GAAP adherence apply to publicly traded companies, not directly to governmental units. Federal legislation does not mandate GAAP for all governmental units, nor does it require all governmental units to be audited every three years. While many states encourage or require adherence to GAAP or GASB (Governmental Accounting Standards Board) standards for state and local governments, it's not accurate to say that each of the 50 states has laws mandating GAAP specifically.

_____ Which Statement Is Correct for Governmental Units