Which of the following is TRUE of the Financial Accounting Standards B

QUESTION

Which of the following is TRUE of the Financial Accounting Standards Board (FASB)?

A) It is a federal agency.
B) It is regulated by the government.
C) It delegates the primary responsibility for GAAP to the SEC.
D) It is responsible for only two of the four generally accepted accounting principles.
E) It establishes, evaluates, and enforces the principles used in financial accounting.

ANSWER

Answer: E
Explanation: E) The FASB is a private, self-regulating organization that establishes, evaluates, and enforces the principles used in financial accounting. The SEC delegates the primary responsibility for GAAP to the FASB.