Concerning FASB Membership, Which Statement Is Not True

question 33

Multiple Choice

Concerning FASB membership, which statement is not true?

• A)Not all members are CPAs from public practice.
• B)All members are full time and fully paid.
• C)All members are also members of the Financial Accounting Foundation.
• D)All members must sever organizational ties with their previous employer.

---

Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions by a central bank for loans, used as a tool for regulating monetary policy.

Cost of Capital

The minimum return a corporation must achieve on its investment activities to keep its market price stable and entice financing.

Cost of Equity

The return that shareholders require or expect to earn on their investment in a company’s equity.

Horizontal Merger

A merger between two companies operating in the same industry, often aiming to create synergies, expand market share, or reduce competition.