Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?
A)Internal Revenue Service.
B)U.S. Congress.
C)Financial Accounting Standards Board.
D)International Accounting Standards BoarD.The Financial Accounting Standards Board is a privately funded group charged with establishing accounting standards for the U.S. It is not a branch of the U.S. government.

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) has the primary responsibility for establishing generally accepted accounting principles (GAAP) for business entities in the United States. The FASB is a private organization that is funded by the accounting profession, and it works closely with the Securities and Exchange Commission (SEC) to ensure that its standards are consistent with federal securities laws. The Internal Revenue Service (IRS) is responsible for administering tax laws, but it does not set accounting standards. The U.S. Congress has passed laws that affect financial accounting, such as the Sarbanes-Oxley Act, but it does not establish GAAP. The International Accounting Standards Board (IASB) is responsible for developing International Financial Reporting Standards (IFRS), which are used in many countries around the world, but they are not the primary accounting standards used in the United States.

Which of the Following Groups Has the Primary Responsibility for Establishing