Which Organization Has the Power to Set Accounting Rules for Companies

question 26

Multiple Choice

Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?

• A) International Accounting Standards Board (IASB)
• B) Financial Accounting Standards Board (FASB)
• C) General Association of Accounting Practitioners (GAAP)
• D) Securities and Exchange Commission (SEC)

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Definitions:

Accommodation Conflict Management

A conflict resolution strategy where one party gives in to the wishes or demands of another to maintain harmony and avoid confrontation.

Compromise

An agreement or settlement of a dispute that is reached by each side making concessions.

Rational Arguments

Logical reasoning and evidence-based discussions used to persuade or explain a viewpoint.

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of appeal.