With respect to the role of the government in establishing accounting standards in the United States, which of the following statements is incorrect?
A) Most accounting reporting requirements are determined by the FASB, which is a non-government institution.
B) The SEC, and not the FASB, has the ultimate legal authority over most financial reporting to investors.
C) The FASB can act independently of the SEC and does not need the SEC's support in establishing accounting standards.
D) The SEC, which is an agency of the federal government, is empowered to ensure full and fair disclosures by corporations.
E) The SEC is allowed to take an active role in establishing accounting standards.
C
You might also like to view...
Regarding the use of blogs in customer service:
A) about 80% of customers read a company's blog. B) blogs are useful for venting and expressing complaints, but rarely for providing service. C) companies should use real-time online conversation and be involved in dialogue with customers. D) although trendy, blogs have little practical application for customer service.
Crowdsourcing means inviting an Internet community to help create content or software, often with prize money or a moment of glory as an incentive
Indicate whether the statement is true or false