Final answer:
Private colleges and universities primarily adhere to the financial reporting standards set by the Financial Accounting Standards Board (FASB), making option A) FASB the correct answer.
Step-by-step explanation:
Private colleges and universities are primarily subject to financial reporting standards issued by the Financial Accounting Standards Board (FASB). The FASB is a private, non-profit organization that establishes accounting and financial reporting standards for non-governmental entities in the United States. Therefore, the correct answer to the question is A) FASB.
The Governmental Accounting Standards Board (GASB) sets standards for state and local governments, not for private institutions. The American Institute of Certified Public Accountants (AICPA) is a professional organization that provides guidelines and support for CPAs, but it does not set financial reporting standards for private colleges and universities.