The rule-setting body that authorizes generally accepted accounting principles is
A) GAAP.
B) FASB.
C) SEC.
D) Federal Reserve System.

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. GAAP are a set of accounting principles, standards, and procedures that companies use to compile their financial statements in a consistent manner. While the SEC (Securities and Exchange Commission) oversees and enforces disclosure requirements for publicly traded companies, they do not authorize GAAP. The Federal Reserve System is responsible for monetary policy and regulation of financial institutions, but they do not set accounting principles.

The Rule-Setting Body That Authorizes Generally Accepted Accounting Principles Is