Chapter 1 - Financial Accounting and Accounting Standards - Concepts for Analysis - Instructions - Page 24: CA1-1(1)

True

Recognized by the Securities and Exchange Commision (SEC), American Institute of Certified Public Accountants (CPAs) and other organizations, FASB acts as the appointed body for setting and enhancing the financial accounting standards within the United States. These accounting standards which include guidelines and authoritative standards are called the "Generally Accepted Accounting Principles" or "GAAP". They are set of accounting principles, accounting procedures and financial reporting standards that must be followed as the basis for preparation, standardization, compilation, and filing of financial statements by companies. FASB is the authority that codifies the GAAP. Therefore the statement is True.