Question

How do FASB, SEC, and GAAP relate within the U.S.?

a) FASB and SEC enforce GAAP
b) FASB and SEC issue regulations
c) FASB develops GAAP, SEC enforces them
d) SEC develops GAAP, FASB enforces them

Answer 1

The FASB develops the GAAP, while the SEC enforces them, making option 'c' the correct relationship among these entities.

Step-by-step explanation:

The Financial Accounting Standards Board (FASB), the Securities and Exchange Commission (SEC), and the Generally Accepted Accounting Principles (GAAP) are all key components of financial regulation within the U.S. Here's how they relate to each other: