All public companies that are traded on a stock exchange and governed by the Securities and Exchange Commission must prepare financial statements following
A)accounting principles set by the Federal Trade Commission.
B)generally accepted accounting principles.
C)generally appropriate accounting standards.
D)standards set by the Accounting Principles Board.

Question

Quizplus · Accepted Answer

All public companies that are traded on a stock exchange and governed by the Securities and Exchange Commission must prepare financial statements following generally accepted accounting principles. These principles are established by the Financial Accounting Standards Board (FASB) and are used to ensure that financial statements are reliable and comparable across different companies. The other options listed are incorrect because the Federal Trade Commission is not responsible for setting accounting principles, generally appropriate accounting standards is not a recognized term in accounting, and the Accounting Principles Board was replaced by the FASB in 1973.

All Public Companies That Are Traded on a Stock Exchange