14. Accounting principles are "generally accepted" only when a. an authoritative accounting rule-making body has established it in an official pronouncement. b. It has been accepted as appropriate because of its universal application. @both a and b. d. neither a norb. 15. A common set of accounting standards and procedures are called a. financial accounting standards. 6. generally accepted accounting principles. c. objectives of financial reporting. d. statements of financial accounting concepts. 16. Which of the following is a general limitation of "general purpose financial statements"? 6. General purpose financial statements may not be the most informative for a specific enterprise. b. General purpose financial statements are comparable. c. General purpose financial statements are assumed to present fairly the company's financial operations. d. None of the above. 17. What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States? a. The SEC requires all companies listed on an exchange to submit their financial statements to the SEC. b. The SEC coordinates with the AICPA in establishing accounting standards. The SEC has a mandate to establish accounting standards for enterprises under its Turisdiction. d. The SEC reviews financial statements for compliance. 18. What is due process in the context of standard setting at the FASB? a. FASB operates in full view of the public. b. Public hearings are held on proposed accounting standards. 5. Interested parties can make their views known. d. All of the above. 19. Which of the following organizations has been responsible for setting U.S. accounting standards? a. Accounting Principles Board. b. Committee on Accounting Procedure. c. Financial Accounting Standards Board. d. All of the above. 20. Why did the AICPA create the Accounting Principles Board? a. The SEC disbanded the previous standard setting organization. (b. The previous standard setting organization did not provide a structured set of accounting principles. c. No such organization existed in the past. d. None of the above. 21. The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the a. FASB. b. AICPA. C. SEC. d. APB