Which of the following is true of the Financial Accounting Standards Board

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) is an independent organization that is responsible for developing and issuing financial accounting standards in the United States. The members of the FASB are appointed by the Financial Accounting Foundation, which is also responsible for selecting the members of the Financial Accounting Standards Advisory Council (FASAC). A) is incorrect because the issuance of Auditing Standards Updates is the responsibility of the Public Company Accounting Oversight Board (PCAOB), not the FASB. B) is incorrect because the Accounting Principles Board (APB) was the forerunner of the FASB, not the other way around. C) is incorrect because the FASB is not an arm of the Securities and Exchange Commission (SEC), although the SEC has the authority to approve or reject the accounting standards that are issued by the FASB.

Which of the Following Is True of the Financial Accounting