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GAAP for nongovernmental, not-for-profit organizations is set by the FASB and the AICPA.

A. True
B. False

1 Answer

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Final answer:

GAAP for nongovernmental, not-for-profit organizations is set by the FASB and the AICPA.

GAAP for not-for-profit organizations are mainly set by the FASB; the AICPA offers additional guidance but does not establish GAAP.

Step-by-step explanation:

True. GAAP for nongovernmental, not-for-profit organizations is indeed set by the FASB (Financial Accounting Standards Board) and the AICPA (American Institute of Certified Public Accountants).

GAAP for not-for-profit organizations are mainly set by the FASB; the AICPA offers additional guidance but does not establish GAAP.

The statement that GAAP for nongovernmental, not-for-profit organizations is set by the FASB and the AICPA is partly true.

GAAP, or Generally Accepted Accounting Principles, for not-for-profit organizations are primarily established by the Financial Accounting Standards Board (FASB). However, the American Institute of Certified Public Accountants (AICPA) can provide supplementary guidance and industry-specific instructions for applying the standards set by the FASB but does not set GAAP by itself.

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