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 is the primary regulatory agency governing financial reporting by public companies in the United States. The Financial Accounting Standards Board (FASB) is a private sector organization that sets accounting standards, but its standards must be approved by the SEC before they can be applied to publicly traded companies. The American Accounting Association is a professional organization for accountants and does not have regulatory authority. The Public Company Accounting Oversight Board (PCAOB) is a nonprofit corporation that oversees the audits of public companies but does not set financial reporting standards.

Which of the Following Has the Legal Authority to Determine