Question

e AICPA created the Accounting Principles Board for which of the following reasons? A : No such organization had existed in the past. B : The previous standard-setting organization had not provided a structured set of accounting principles. C : The SEC disbanded the previous standard-setting organization. D : None of the choices is correct.

Answer 1

Answer:

The previous standard-setting organization had not provided a structured set of accounting principles (B)

Explanation:

Given wide  criticism that the Committee on Accounting Procedure (CAP) did not reduce alternative accounting principles, the AICPA appointed a special committee to recommend “definite steps to lead in the thinking on unsettled and controversial issues.

The committee’s report in September 1958 led to the establishment of the Accounting Principles Board (APB), replacing the CAP one year later.