Which of the following is true regarding the Committee on Accounting Procedures (CAP)?
A)It developed a comprehensive statement of accounting principles.
B)It adopted a policy of attacking specific problems and recommending preferred methods of accounting when possible.
C)It was formed by the SEC in 1936.
D)It eliminated the use of alternative accounting practices by establishing an underlying accounting theory.

Question

Quizplus · Accepted Answer

The Committee on Accounting Procedures (CAP) was established by the American Institute of Certified Public Accountants (AICPA) in 1939, and its main function was to issue pronouncements on accounting principles, which would guide the accounting profession. CAP adopted a policy of attacking specific problems and recommending preferred methods of accounting when possible, instead of developing a comprehensive statement of accounting principles. CAP did not eliminate the use of alternative accounting practices nor did it establish an underlying accounting theory.

Which of the Following Is True Regarding the Committee on Accounting