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:

SWAT Team

A specialised unit within law enforcement agencies trained to handle high-risk operations that fall outside the abilities of regular officers.

Hostages

Individuals held captive or prisoner by others, typically to compel another party to meet certain demands.

Superstition

Beliefs or practices that are rooted in magical thinking and unscientific correlations between actions and events.

Hypatia of Alexandria

A renowned mathematician, astronomer, and philosopher of ancient Alexandria, celebrated for her intellectual achievements and tragic death.