Which Organization Has the Power to Set Accounting Rules for Companies

question 64

Multiple Choice

Which organization has the power to set accounting rules for companies whose stock is publicly-traded in the U.S. stock markets, but has delegated its power to another organization?

• A)International Accounting Standards Board (IASB)
• B)Financial Accounting Standards Board (FASB)
• C)General Association of Accounting Practitioners (GAAP)
• D)Securities Exchange Commission (SEC)

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Definitions:

Population Parameter

A numerical value that represents a characteristic of an entire population, such as its mean or standard deviation.

Interval Estimate

An estimate that provides a range of values which is likely to include the population parameter of interest.

Confidence Level

The confidence associated with an interval estimate. For example, if an interval estimation procedure provides intervals such that 95% of the intervals formed using the procedure will include the population parameter, the interval estimate is said to be constructed at the 95% confidence level.

Confidence Interval

A breadth of outcomes, sourced from sample-derived statistics, expected to surround the unknown figure of a population characteristic.