Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

Financial Accounting

15. GAAP vs IFRS

GAAP vs. IFRS: Introduction

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Multiple Choice

If the SEC does not agree with a standard issued by the private sector, it can:

Automatically adopt the standard without changes.

Refuse to accept the standard for use by public companies in the United States.

Request the FASB to dissolve and form a new standard-setting body.

Apply the standard only to private companies.

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Verified step by step guidance

Understand the role of the SEC (Securities and Exchange Commission) in overseeing financial reporting standards in the United States. The SEC has the authority to regulate and enforce standards for public companies.

Recognize the role of the FASB (Financial Accounting Standards Board), which is the private sector body responsible for developing and issuing accounting standards (GAAP). The SEC often works closely with the FASB but retains the authority to reject standards if deemed inappropriate.

Analyze the options provided in the problem. The SEC cannot automatically adopt a standard without changes, as it reviews and evaluates standards before acceptance. Similarly, the SEC does not have the authority to dissolve the FASB or apply standards exclusively to private companies.

Focus on the correct answer: The SEC can refuse to accept a standard for use by public companies in the United States. This reflects its regulatory oversight and responsibility to ensure standards align with public interest and financial transparency.

Conclude that the SEC's refusal to accept a standard would prompt further review or revision by the FASB to address the SEC's concerns, ensuring compliance with regulatory requirements.