The Private-Sector Group That Currently Has the Authority to Establish

question 178

Multiple Choice

The private-sector group that currently has the authority to establish generally accepted accounting principles in the United States is the:

• A)APB.
• B)FASB.
• C)AAA.
• D)AICPA.
• E)SEC.

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Definitions:

Operating Cycle

A measure of the time it takes for a business to purchase inventory, sell products, and convert sales into cash.

Invoice Date

This is the date on which an invoice is issued, marking the point when the seller officially requests payment from the buyer for goods or services provided.

Terms of Sale

Conditions agreed upon by a buyer and seller regarding the purchase, including payment and delivery conditions.