Question

Which of the following statements regarding primary sources of accounting and financial reporting standards is FALSE:

The GASB sets standards for all state and local governments
The FASB sets standards for all business and NFP entities
The FASB and GASB are administered by the Financial Accounting Foundation
FASB sets standards for the federal gov't

Answer 1

The false statement about accounting and financial reporting standards is that the FASB sets standards for the federal government; it's actually the FASAB that does this.

Step-by-step explanation:

The statement that is FALSE regarding primary sources of accounting and financial reporting standards is: FASB sets standards for the federal government. In fact, it's the Federal Accounting Standards Advisory Board (FASAB) that sets the standards for the federal government, not the Financial Accounting Standards Board (FASB). The FASB is responsible for setting standards for all business and Not-for-Profit (NFP) entities, while the Governmental Accounting Standards Board (GASB) sets standards for all state and local governments. Both FASB and GASB are administered by the Financial Accounting Foundation (FAF).

The false statement regarding primary sources of accounting and financial reporting standards is:The FASB sets standards for the federal gov'tThe other statements are true:The GASB sets standards for all state and local governmentsThe FASB sets standards for all business and NFP entitiesThe FASB and GASB are administered by the Financial Accounting Foundation