An Accountant Generally Has an Obligation to Prepare Statements for a Publicly-Traded

question 5

Multiple Choice

An accountant generally has an obligation to prepare statements for a publicly-traded corporation in "accordance with GAAP." What does this mean?

• A) An accountant must always follow the mandates of rules established by the FASB and not apply international accounting standards
• B) An accountant may follow either the rules of the FASB or the rules of IFRS, depending on the jurisdiction in which the intended readers of the financial statements are located
• C) An American accountant must follow both the rules of the FASB and the rules of the AICPA's Code of Professional Conduct
• D) Any well-recognized, systematic framework of accounting may be applied, as long as the framework is prominently disclosed