Question

Pronouncements issued by the Committee on Accounting Procedures:

A. Dealt with specific accounting and reporting problems.
B. Were based on exposure drafts and public comment letters.
C. Originated from congressional studies and SEC directives.
D. Were the outcome of research studies and a theoretical framework.

Answer 1

The Committee on Accounting Procedures addressed specific accounting and reporting issues problem by problem without a theoretical framework, and they paved the way for later organizations like the FASB which sought to establish more uniform accounting standards. The pronouncements issued by the Committee on Accounting Procedures (CAP) a. dealt with specific accounting and reporting problems.

Step-by-step explanation:

These pronouncements helped to establish the protocols and practices for accounting in the United States prior to the creation of the Financial Accounting Standards Board (FASB). The CAP's approach was often reactive, addressing issues as they arose rather than establishing a uniform code or theoretical framework for accounting standards. Although subsequent organizations like the FASB have made efforts towards a codified set of principles grounded in a theoretical framework, the CAP worked problem by problem, without the broader frameworks seen in later reforms such as those following the Sarbanes-Oxley Act of 2002, which increased financial transparency and investor protection in response to major accounting scandals.