The ________ Determines Accounting Policy for U.S. Firms

question 31

Multiple Choice

The ________ determines accounting policy for U.S. firms.

• A) Securities and Exchange Commission (SEC)
• B) Federal Reserve System (Fed)
• C) Financial Accounting Standards Board (FASB)
• D) General Agreement on Tariffs and Trade (GATT)

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Definitions:

Fair Value

The estimated market price of an asset or liability, reflecting the amount at which it could be bought or sold in a current transaction between willing parties.

Relevant Information

Relevant information comprises data that is applicable and helpful in making decisions, particularly in the context of financial and managerial accounting.

Qualitative Characteristic

Attributes that make the information provided in financial statements useful to users, including relevance, understandability, comparability, and reliability.