Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

The FASB (Financial Accounting Standards Board) is the current standards setting body for U.S. generally accepted accounting principles (GAAP). The IASB (International Accounting Standards Board) is the global standards setting body for International Financial Reporting Standards (IFRS), which is an alternative set of accounting standards to GAAP. Option A is incorrect, as the IASB is based in London and does not govern U.S. accounting standards. Option C is also incorrect, as the application of both GAAP and IFRS can require judgment and interpretation. Option D is incorrect, as the IRS (Internal Revenue Service) is a government agency responsible for collecting taxes, not determining accounting principles.

Which of the Following Statements Is TRUE