The Federal Financial Management Improvement Act of 1996 formally recognized which of the following organizations...

The Federal Financial Management Improvement Act (FFMIA) of 1996 established the requirement for federal agencies to implement and maintain financial systems that comply with federal accounting standards. It formally recognized the Federal Accounting Standards Advisory Board (FASAB) as the source of GAAP for federal agencies.

FASAB’s standards are authoritative for federal entities, much like GASB for state and local governments and FASB for private-sector entities.

Relevant References:

Federal Financial Management Improvement Act of 1996 (Public Law 104–208, Title VIII)

FASAB Handbook – Introduction & Authority

GAO Federal Accounting Standards Overview

Answer: D. FASAB