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:

Nonnegotiable Instrument

A financial document or contract that cannot be transferred or assigned to another party as easily as a negotiable instrument.

Mortgage

A secured loan agreement where the borrower pledges real property to the lender as collateral for the loan, which becomes void upon payment in full.

Negotiability

The characteristic of an instrument (like a check or promissory note) that allows it to be transferred from one person to another in a manner that conveys the instrument's benefits to the transferee.

Issuance

The process of officially issuing something, such as a document like a permit or license, or securities like bonds or stocks.