An accounting principle must receive substantial authoritative support to qualify as generally accepted. Among the organizations and agencies that have been influential in the development of generally accepted accounting principles, which of the following has provided the most influential leadership?

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The Financial Accounting Standards Board (FASB) has provided the most influential leadership in the development of generally accepted accounting principles (GAAP) in the United States. FASB is an independent private-sector organization that establishes and improves financial accounting and reporting standards through a transparent and inclusive process. Its standards are recognized as authoritative by the Securities and Exchange Commission (SEC) and are widely accepted as the authoritative source of GAAP in the United States. The Institute of Management Accountants (IMA) is a professional organization for management accountants and financial professionals and has also contributed to the development of accounting principles, but to a lesser extent than FASB. Tax authorities and stock exchanges do not create or regulate GAAP.

An Accounting Principle Must Receive Substantial Authoritative Support to Qualify