What are the Statements of Financial Accounting Concepts intended to establish?

Choice "c" is correct. Statements of Financial Accounting Concepts are intended to establish the

objectives and concepts that the Financial Accounting Standards Board will use in developing

standards of financial accounting and reporting. SFAC 1 para. 3

Choice "a" is incorrect. The Statements of Financial Accounting Concepts do not specify financial

accounting standards prescribing accounting procedures or practices. SFAC 1 para. 3

Choice "b" is incorrect. Auditing standards develop the meaning of "Present fairly in accordance with

generally accepted accounting principles."

Choice "d" is incorrect. The hierarchy of sources of generally accepted accounting principles is

determined by GAAP.