The choice of accounting methods is made by:
A) setters of accounting standards
B) preparers of financial reports
C) users of financial reports
D) both A and B

Question

Quizplus · Accepted Answer

The choice of accounting methods is made by both the setters of accounting standards (A) and the preparers of financial reports (B). The setters of standards, such as the Financial Accounting Standards Board (FASB), establish rules and guidelines that companies must follow in their financial reporting. However, within those standards, companies have some flexibility in choosing specific accounting methods. This means that preparers of financial reports must make decisions about which methods to use in order to accurately reflect their company's financial performance.

The Choice of Accounting Methods Is Made By