With respect to the role of the government in establishing accounting standards in the United States,which of the following statements is incorrect?
A)Most accounting reporting requirements are determined by the FASB,which is a non-government institution.
B)The SEC,and not the FASB,has the ultimate legal authority over most financial reporting to investors.
C)The FASB can act independently of the SEC and does not need the SEC's support in establishing accounting standards.
D)The SEC,which is an agency of the federal government,is empowered to ensure full and fair disclosures by corporations.
E)The SEC is allowed to take an active role in establishing accounting standards.

Question

Quizplus · Accepted Answer

The FASB operates under the oversight of the SEC, and while it is the primary body for the development of accounting standards, its actions and standards can be influenced or must be recognized by the SEC for them to have legal authority. This means the FASB cannot act completely independently of the SEC in establishing accounting standards.

With Respect to the Role of the Government in Establishing