The private group that currently has the authority to establish generally accepted accounting principles in the United States is the:
A) APB.
B) FASB.
C) AAA.
D) AICPA.
E) SEC.

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) is the private group that currently has the authority to establish generally accepted accounting principles (GAAP) in the United States. The other choices are not currently responsible for setting GAAP. The APB (Accounting Principles Board) and AAA (American Accounting Association) were involved in this function in the past, but the FASB replaced them in 1973. The AICPA (American Institute of Certified Public Accountants) is a professional organization for accountants and plays a role in setting ethical and auditing standards, but it does not have direct authority over GAAP. The SEC (Securities and Exchange Commission) can influence GAAP through its oversight role of financial reporting and disclosure by public companies, but it does not establish GAAP itself.

The Private Group That Currently Has the Authority to Establish