Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies?

Question

Quizplus · Accepted Answer

The Securities and Exchange Commission (SEC) has specific legal authority to establish accounting standards for publicly held companies. The Financial Accounting Standards Board (FASB) is a non-governmental organization that works with the SEC to establish accounting standards. The Internal Revenue Service (IRS) is responsible for enforcing tax laws and regulations, not accounting standards. The American Institute of Certified Public Accountants (AICPA) is a professional organization for accountants and does not have legal authority to establish accounting standards.

Which of the Following Organizations Has Specific Legal Authority to Establish