Question

Responsibility for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations rests with the FASB and was most clearly established. True or False?

Answer 1

The FASB is responsible for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations.

Step-by-step explanation:

Responsibility for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations does not rest with the FASB, but rather with the Financial Accounting Standards Board (FASB). The FASB is an independent private-sector organization that develops and establishes GAAP for both for-profit and not-for-profit organizations.

The Financial Accounting Foundation (FAF) established the FASB in 1973 to set accounting standards in the United States. The FASB's mission is to provide useful financial reporting information to investors, creditors, and other users of financial statements.

Therefore, the statement is False. The FASB, not the FASB, has the responsibility for establishing GAAP for nongovernmental, not-for-profit organizations.