Which of the Following Groups Has the Primary Responsibility for Establishing

question 57

Multiple Choice

Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?

• A)Securities and Exchange Commission
• B)U.S.Congress
• C)International Accounting Standards Board
• D)Financial Accounting Standards Board

---

Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, usually fixed and based on a percentage of the par value of the shares.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a period.

Net Sales

The total revenue from sales of goods and services, after deducting returns, allowances for damaged or missing goods, and any discounts allowed.