Question

2 — governance
learning objective: differentiate between governing principles, bodies, and agencies involved in regulating accounting practices.
the governing body ______ is responsible for developing the u.s. governing principles known as ______.

a.) gasb; aicpa
b.) sec; gao
c.) fasb; gaap
d.) irs; ifrs

Explanation:

The Financial Accounting Standards Board (FASB) is the U.S. governing body tasked with developing and updating Generally Accepted Accounting Principles (GAAP), which are the standard U.S. accounting principles. Other options are incorrect: GASB focuses on government accounting, SEC enforces securities laws, IRS handles tax collection, and IFRS is international standards.

Answer:

c.) FASB; GAAP