The rule-setting body, which authorizes generally accepted accounting principles is:
A)GAAP
B)FASB
C)SEC
D)Federal Reserve System
E)none of the above

Question

Quizplus · Accepted Answer

FASB (Financial Accounting Standards Board) is the rule-setting body that authorizes generally accepted accounting principles (GAAP) in the United States. The SEC (Securities and Exchange Commission) oversees the financial reporting requirements for public companies, but it does not authorize GAAP. The Federal Reserve System is responsible for monetary policy and regulating banks, but it does not have authority over accounting principles.

The Rule-Setting Body, Which Authorizes Generally Accepted Accounting Principles Is