Which of the following has the legal authority to determine financial reporting in the United States?

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) has the legal authority to determine financial reporting in the United States. The Financial Accounting Standards Board (FASB) is an independent organization that sets accounting standards, but the SEC has the final authority to approve or reject those standards. The American Accounting Association (AAA) is a professional organization for accountants and does not have regulatory authority. The Public Company Accounting Oversight Board (PCAOB) was created to oversee the audit of public companies and protect investors, but it does not determine financial reporting standards.

Which of the Following Has the Legal Authority to Determine