BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is true?
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FASB creates SEC
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GAAP creates FASB
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SEC creates AICPA
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FASB creates U.S. GAAP
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Explanation:
Detailed explanation-1: -The US GAAP is a comprehensive set of accounting practices that were developed jointly by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB), so they are applied to governmental and non-profit accounting as well.
Detailed explanation-2: -Answer choice: d. U.S. GAAP helps investors and creditors evaluate the financial health of a company. Explanation: Public companies are required to prepare their financial statements using U.S. GAAP.
Detailed explanation-3: -1936 The Institute publishes Examinations of Financial Statements, which introduces the term ‘generally accepted accounting principles, ’ known as GAAP.
There is 1 question to complete.