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Exam Code: PEGAPCSSA86V1
Exam Name: Pega Certified Senior System Architect (PCSSA) 86V1
Certification Provider: Pegasystems
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NEW QUESTION: 1
Arpco, Inc., a for-profit provider of healthcare services, recently purchased two smaller companies and is
researching accounting issues arising from the two business combinations. Which of the following
accounting pronouncements are the most authoritative?
A. AICPA Industry and Audit Guides.
B. AICA Statements of Position.
C. FASB Statements of Financial Accounting Concepts.
D. FASB Statements of Financial Accounting Standards.
Choice "d" is correct. Since Arpco is a for-profit provider of healthcare services, it is covered under normal
GAAP. Thus, the most authoritative pronouncements are the FASB Statements of Financial Accounting
Standards (SFAS). Choice "a" is incorrect. AICPA Statements of Position are not the most authoritative
pronouncement for almost anything (other than for some issues that only they cover). They are normally
"merely" the opinion of the AICPA.
Choice "b" is incorrect. AICPA Industry and Audit Guides are not the most authoritative pronouncement
for almost anything (other than for some issues that only they cover). Choice "c" is incorrect. FASB
Statements of Financial Accounting Concepts are not authoritative pronouncements except where they
have been incorporated by reference into an SFAS. They are the basis on which SFAS can be
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