Which of the Following Has Primary Responsibility to Develop Generally

question 32

Multiple Choice

Which of the following has primary responsibility to develop Generally Accepted Accounting Principles?

• A)Financial Accounting Standards Board.
• B)Company Executives.
• C)Securities and Exchange Commission.
• D)Public Company Accounting Oversight BoarD.The Securities and Exchange Commission has charged the Financial Accounting Standards Board with developing Generally Accepted Accounting Principles.

---

Definitions:

Dividends

Dividends are a portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional stock.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the net assets of the investee.

Net Income

The total earnings or profit of a company after subtracting all expenses, including taxes and operating expenses, from its total revenue.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core operations.