The SEC was given the power to establish accounting principles including setting requirements for details shown on financial statements by the:
A) FASB
B) AICPA
C) Congress
D) AAA

Question

Quizplus · Accepted Answer

The power to establish accounting principles and set requirements for financial statements is given to the SEC through the Securities Act of 1933 and the Securities Exchange Act of 1934 by Congress. The Financial Accounting Standards Board (FASB) and American Institute of Certified Public Accountants (AICPA) may provide guidance on accounting principles, but the ultimate authority lies with the SEC. Similarly, the American Accounting Association (AAA) is an organization that promotes accounting education and research but does not have the power to establish accounting principles.

The SEC Was Given the Power to Establish Accounting Principles