Two Sets of Financial Accounting Standards Are Generally Accepted Accounting

question 39

Multiple Choice

Two sets of financial accounting standards are generally accepted accounting principles (GAAP) and statutory accounting practices (SAP) . One true statement about these financial accounting standards is that

• A) State laws and regulations in the United States govern the implementation of GAAP, but not the implementation of SAP
• B) Health plans must prepare their financial statements for their external users according to applicable laws, regulations, and accounting principles, particularly GAAP
• C) GAAP specifically focuses on the requirements of insurance regulators and policyholder interests
• D) The Financial Accounting Standards Board (FASB) is a private organization whose purpose is to establish and promote SAP in the United States

---

Definitions:

Life Expectancy

Age to which a person in a particular cohort is statistically likely to live (given his or her current age and health status), on the basis of average longevity of a population.

Suicide

The act of intentionally causing one's own death.

Self-Determination

A theory in psychology that refers to each person's ability to make choices and manage their own life, emphasizing the importance of autonomy and self-regulation.

Grief

The complex emotional experience following the loss of a loved one or significant change.