GAAP is a product of careful logic or empirical findings and is not influenced by political action.

Question

Quizplus · Accepted Answer

GAAP is influenced by political action, as the standards are set by the Financial Accounting Standards Board (FASB), which operates under the oversight of the Securities and Exchange Commission (SEC), a government agency. The FASB is subject to pressure and influence from various interest groups and political interests.

GAAP Is a Product of Careful Logic or Empirical Findings