Which of the Following Statements Regarding the Requirement to Follow

question 12

Multiple Choice

Which of the following statements regarding the requirement to follow U.S. GAAP in financial reporting is true?

• A) U.S. GAAP has been adopted as federal law, so failure to follow U.S. GAAP is prosecuted through the federal court system.
• B) U.S. GAAP has been adopted as state law in all 50 states, so failure to follow U.S. GAAP is prosecuted through the state court system.
• C) U.S. GAAP represents a set of professional standards, and the requirement to follow U.S. GAAP is enforced through the AICPA Code of Professional Conduct.
• D) Compliance with U.S. GAAP is not enforced; it is a voluntary choice made by most companies and by most professional accountants

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Definitions:

Popularity

The state or condition of being liked, admired, or supported by many people.

Unpopularity

A state or condition of not being liked or popular among peers or in a broader social context.

Characteristics

refer to distinguishing traits, qualities, or properties that identify and differentiate a person, object, or phenomenon.

Appeal to Majority

A logical fallacy where the popularity of an idea is used as evidence of its truth or correctness.