Answer :
Final answer:
The conceptual framework underlying financial accounting in the U.S. was created by the Financial Accounting Standards Board (FASB) to provide guidance and establish accounting standards for financial reporting. It promotes consistency and comparability in financial statements.
Explanation:
The conceptual framework underlying financial accounting in the U.S. was created by the Financial Accounting Standards Board (FASB). The FASB is a private-sector organization responsible for developing and establishing the accounting standards that govern financial reporting in the U.S.
The FASB creates a conceptual framework that provides guidance on how financial accounting should be performed and the principles that should be followed. This framework helps ensure consistency and comparability in financial reporting, allowing investors and other users of financial statements to make informed decisions.
