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Select the best answer.
1. Rule 203 of the AICPA’s Code of Professional Conduct pertains to
a. CPAs’ independence
b. Authorities designated to establish accounting standards
c. Standards of competency
d. Solicitation of new clients by a CPA
2. Which of the following rule-making authorities would establish accounting standards for Stanford University (a private university)?
a. The AICPA
b. The FASB
c. The FASAB
d. The GASB
3. Which of the following rule-making authorities would establish accounting standards for the University of Wisconsin (a public university)?
a. The AICPA
b. The FASB
c. The FASAB
d. The GASB
4. If the GASB has not issued a pronouncement on a specific issue, which of the following is true with respect to FASB pronouncements?
a. They would automatically govern
b. They could be taken into account but would have no higher standing than other accounting literature
c. They are irrelevant
d. They could be taken into account by the reporting entity but only if disclosure is made in notes to the financial statements
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