For Which Types of Organizations Is the Financial Accounting Standards

question 17

Multiple Choice

For which types of organizations is the Financial Accounting Standards Board (FASB) responsible for establishing accounting and financial reporting standards?

• A)Business-type organizations and not-for-profit organizations,including not-for-profit colleges,universities and health care providers
• B)Business-type organizations;not-for-profit organizations;and all colleges,universities and health care providers,whether organized as not-for-profit or governmental entities
• C)Business-type organizations only
• D)All entities,except for those under the jurisdiction of the American Institute of CPAs

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Definitions:

Acquired Land

Land obtained through purchase or other means, which appears as an asset on the balance sheet and might be used for operations or investment.

Parent Company

A corporation that owns more than half of the voting stock of another company, thereby controlling it and often consolidating its financial statements with its own.

Current Accounting Regulations

The prevailing rules and standards that govern how financial records are maintained and reported, varying by jurisdiction and overseen by regulatory bodies.

Non-current Assets

These are assets held for long-term use in a business, not expected to be converted into cash within one year, such as property, plant, and equipment.