Which of the Following Organizations Is Primarily Responsible for Establishing

question 97

Multiple Choice

Which of the following organizations is primarily responsible for establishing GAAP in the United States?

• A) Securities and Exchange Commission (SEC)
• B) Financial Accounting Standards Board (FASB)
• C) International Accounting Standards Board (IASB)
• D) Internal Revenue Service (IRS)

---

Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Income Statement

A financial document that reports a company's revenues, expenses, and profit over a specific period, showing its financial performance.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.

Asset Value

The monetary worth attributable to an asset, which could be based on market value, cost, or an appraisal method.