Chapter 1, Problem 6RQ

To determine

Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create accounting principles for the implementation of financial information reporting.

Financial Accounting Standards Board (FASB): This is the organization which creates, develops, and approves accounting standards; and administrates GAAP.

To explain: Purpose of GAAP and FASB, the organization which is responsible for creation and governance of GAAP