CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Which two authorities are primarily responsible for establishing generally accepted accounting principles in the United States?

A. The Financial Accounting Standards Board and the Internal Revenue Service
B. The Financial Accounting Standards Board and the Securities and Exchange Commission
C. The Financial Accounting Standards Board and the American Institute of Certified Public Accountants
Correct Answer: B

The Financial Accounting Standards Board is a private sector board that consists of seven members. The Securities and Exchange Commission is a government agency. Both groups have primary responsibility for establishing generally accepted accounting principles. However, the Securities and Exchange Commission delegates much of its authority for establishing generally accepted accounting principles to the Financial Accounting Standards Board.

User Contributed Comments 4

User Comment
danlan Good to know both FASB and SEC's responsibility and their relationship
armanaziz What's the role of AICPA?
achu Note, it's FASB and SEC, NOT AICPA. I believe aicpa members probably overlap with FASB in many cases.
johntan1979 Nothing much... provide the credentials, sets generally accepted professional and technical standards for CPAs
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