Why Did the AICPA Create the Accounting Principles Board

question 63

Multiple Choice

Why did the AICPA create the Accounting Principles Board?

• A) The SEC disbanded the previous standard setting organization.
• B) The previous standard setting organization did not provide a structured set of accounting principles.
• C) No such organization existed in the past.
• D) None of the answer choices are correct.

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Definitions:

Raw Materials

Basic materials from which products are made, often extracted from the earth and unprocessed or minimally processed before use.

Inputs

Resources, energy, or information fed into a system or process to achieve output or results, crucial for the functioning of various systems.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Retained Earnings

The portion of net income left over for the company after it has paid out dividends to its shareholders.