The Organization(s) Primarily Responsible for Establishing Generally Accepted Accounting Principles $\begin{array}{lrr} \underline{\text { FASB }} & \underline{\text { SEC }}\\\end{array}$

question 224

Short Answer

The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the $\begin{array}{lrr} \underline{\text { FASB }} & \underline{\text { SEC }}\\\end{array}$
A) $\begin{array}{lrr} \text { no } && \text { no } &\\\end{array}$

B) $\begin{array}{lrr} \text { yes } && \text { no } &\\\end{array}$

C) $\begin{array}{lrr} \text {no } &&& \text { no } &\\\end{array}$

D) $\begin{array}{lrr} \text {yes } && \text { yes} &\\\end{array}$

• A)\(\begin{array}{lrr}
• \text { no } && \text { no } &\\
• \end{array}\)
• B)\(\begin{array}{lrr}
• \text { yes } && \text { no } &\\
• \end{array}\)
• C)\(\begin{array}{lrr}
• \text {no } &&& \text { no } &\\
• \end{array}\)
• D)\(\begin{array}{lrr}
• \text {yes } && \text { yes} &\\
• \end{array}\)

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Definitions:

Horizontal Division

The organizational structure that involves dividing a company based on different types of jobs or tasks, leading to departments that are on the same level.

Line Units

Core units or departments in an organization that are directly involved in its primary activities or objectives.

Decentralization

The degree to which the authority to make decisions is given to lower levels in an organization’s hierarchy.

Hierarchy of Authority

A system in organizations where individuals are ranked according to their roles and responsibilities, establishing a clear line of command from top to bottom.