Generally Accepted Accounting Principles (GAAP) are currently formulated by the:

• A. American Institute of Certified Public Accountants (AICPA)
• B. Financial Accounting Standards Board (FASB)
• C. International Accounting Standards Board (IASB)
• D. Securities and Exchange Commission (SEC)

Answer: (B)

Verified step by step guidance

1. Understand the concept of Generally Accepted Accounting Principles (GAAP), which are a set of rules and standards used in financial accounting and reporting.
2. Learn about the organizations involved in the formulation and oversight of accounting standards, such as the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants (AICPA), the International Accounting Standards Board (IASB), and the Securities and Exchange Commission (SEC).
3. Recognize that the Financial Accounting Standards Board (FASB) is the primary organization responsible for formulating GAAP in the United States.
4. Differentiate the roles of other organizations: AICPA provides guidance and professional standards for accountants, IASB formulates international accounting standards, and SEC oversees public companies and enforces compliance with GAAP.
5. Conclude that while multiple organizations contribute to the accounting framework, FASB is the correct answer as it is specifically tasked with developing and maintaining GAAP.