Question

The FASB has the authority to establish accounting and financial reporting standards for which of the following? a) both answers are true b) neither answer is true c) private not-for-profits d) commercial businesses

Answer 1

Answer:

c) private not-for-profits

Explanation:

The FASB is an independent non-profit organization whose responsibility involves establishing and implementing accounting and reporting standards in the US.  The Generally Accepted Accounting Principles (GAAP) guides  FASB or Financial Accounting and Standards Board in fulfilling its mandate.

The FASB has the authority to interpret the GAAP  for all organizations, including private and public companies, as well as profit and non-profit institutions. FASB set accounting rules and regulations to ensure standards and uniformity in the accounting industry.