Accounting standards are formulated by the:
A) SEC.
B) AICPA.
C) FASB.
D) IRS.

Question

Quizplus · Accepted Answer

Accounting standards are formulated by the Financial Accounting Standards Board (FASB), an independent organization established in 1973 to develop and improve financial accounting and reporting standards in the United States. The SEC (A) has oversight over the FASB, but it does not formulate accounting standards. The AICPA (B) is a professional organization for certified public accountants, but it does not have the authority to set accounting standards. The IRS (D) is responsible for enforcing tax laws, but it does not formulate accounting standards.

Accounting Standards Are Formulated by The