Question

The Financial Accounting Board develops generally accepted accounting principles to provide some assurance that companies are reporting business activities in a similar manner

a. True
b. False

Answer 1

The Financial Accounting Standards Board (FASB) develops generally accepted accounting principles (GAAP) to ensure companies report business activities in a similar manner.

Step-by-step explanation:

The statement is true. The Financial Accounting Standards Board (FASB) is responsible for developing generally accepted accounting principles (GAAP) in the United States. GAAP provides a standardized framework for financial reporting and ensures that companies report their business activities in a similar manner. This helps to enhance the comparability and reliability of financial information among different companies.