Question

Which of the following statements includes the most useful guidance for practicing accountants concerning the FASB Accounting Standards Codification.The Codification includes only FASB Statements.The Codification is the sole source of U.S. GAAP, for nongovernmental entities.The Codification significantly modified the content of GAAP when it became effective.An accountant can be sure that all SEC rules are included in the Codification

Answer 1

Answer:

The correct answer is The Codification is the sole source of U.S. GAAP, for nongovernmental entities.

Explanation:

The US GAAP (Generally Accepted Accounting Principles) are generally accepted accounting principles, used by companies in the United States or listed on Wall Street. They cover a massive volume of standards, interpretations, opinions and newsletters and are prepared by the FASB (Directory of Financial Accounting Standards or Financial Accounting Standards Board), by the accounting union (the American Institute of Certified Public Accountants (AICPA) and the Securities and Exchange Commission (SEC).

The USGAAP is the US equivalent of the International Financial Reporting Standards. They are very detailed, and reflect the atmosphere of litigation that prevails in the United States, which requires an increasingly detailed regulation. The USGAAP cannot deviate from the regulatory intraversion of the SEC.