Question

The Financial Accounting Standards Board (FASB)

a) is a division of the securities and exchange commission (SEC)
b) Is a private body that helps set accounting standards in the United States
c) Is responsible for setting auditing standards that all auditors must follow
d) Consists entirely of members of the American Institute of Certified Public Accountants

Answer 1

The Financial Accounting Standards Board (FASB) is a private body that helps set accounting standards in the United States. It promotes consistency and comparability in financial reporting.

Step-by-step explanation:

The Financial Accounting Standards Board (FASB) is a private body that helps set accounting standards in the United States. It was established in 1973 and is responsible for developing and updating Generally Accepted Accounting Principles (GAAP) for public and private companies. The FASB works independently of any government agency and is not a division of the Securities and Exchange Commission (SEC). However, the SEC does have the authority to enforce the accounting standards set by the FASB for public companies.

The FASB's mission is to provide transparent and reliable financial information to investors and other users of financial statements. By setting accounting standards, the FASB promotes consistency and comparability in financial reporting, which benefits stakeholders in making informed financial decisions.