(L.O. 5) All of the following organizations are directly involved in the development of financial accounting standards (GAAP) in the United States, except the:

a. Internal Revenue Service (IRS).

b. Financial Accounting Standards Board (FASB).

c. American Institute of Certified Public Accountants (AICPA).

d. Securities and Exchange Commission (SEC).

Explanation: The Internal Revenue Service (IRS) is responsible for federal income tax rules and administration. Although the IRS and its Internal Revenue Code are influences on accounting practice, they are not directly involved in the development of accounting standards (for financial statements) as are the other organizations listed. (Solution = a.)