Question

Which of the following entities does not provide guidance about Generally Accepted Accounting Principles (GAAP) for companies that are publicly listed on a stock exchange?

A) EITF (Emerging Issues Task Force)
B) FASB (Financial Accounting Standards Board)
C) GASB (Governmental Accounting Standards Board)
D) IASB (International Accounting Standards Board)

Answer 1

The Governmental Accounting Standards Board (GASB) does not provide guidance about GAAP for publicly listed companies. The EITF, FASB, and IASB do.

The correct answer is C) GASB (Governmental Accounting Standards Board).

Step-by-step explanation:

The GASB is responsible for setting accounting and financial reporting standards for state and local governments, not for publicly traded companies.

The entity that does not provide guidance about Generally Accepted Accounting Principles (GAAP) for companies publicly listed on a stock exchange is the GASB (Governmental Accounting Standards Board).

Publicly listed companies follow GAAP as outlined mainly by the FASB (Financial Accounting Standards Board), with the EITF (Emerging Issues Task Force) assisting in the interpretation and implementation of those standards.

The IASB (International Accounting Standards Board) develops the International Financial Reporting Standards (IFRS), which are used in many countries, but are not the GAAP used for U.S. publicly listed companies.