The Purposes of the Joint Long-Term Project of the FASB

question 4

Multiple Choice

The purposes of the joint long-term project of the FASB and IASB to converge revenue recognition principles include all of the following except

• A)eliminate inconsistencies in conceptual guidance on revenues
• B)replace principle-based accounting with rule-based accounting for revenues
• C)establish a single comprehensive standard on revenue recognition
• D)fill voids in revenue recognition guidance

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Definitions:

Supporting Service Expenses

Costs incurred by a business or organization for activities that aid the operation but do not directly contribute to the main business activity.

Not-for-Profit Entity

An organization that operates for charitable, educational, cultural, religious, or other purposes serving the public interest, where profitability is not the primary goal.

Supporting Services Expenses

Costs incurred for activities that assist the core operations of a business but do not directly contribute to production.

Journal Entry

A recording in the accounting ledger that represents a single transaction and its effect on the accounts, consisting of at least one debit and one credit.