Arpco, Inc., a for-profit provider of healthcare services, recently purchased two smaller companies and is researching accounting issues arising from…

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 constructed.