Which of the Following Statements Is Not Correct

question 27

Multiple Choice

Which of the following statements is not correct?

• A) The Securities and Exchange Commission (SEC)issues the Statements of Financial Accounting Standards.
• B) Statements issued by the Financial Accounting Standards Board (FASB)are binding on the members of the American Institute of Certified Public Accountants (AICPA).
• C) An act of law gave the SEC the authority to determine the form and content of accounting reports filed by companies under its jurisdiction.
• D) The Financial Accounting Standards Board is an independent organization.

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Definitions:

Natural Monopoly

A market situation where a single supplier can provide a good or service more efficiently than any potential competitor, often due to high initial setup costs.

Local Phone Company

A telecommunications company that provides phone services primarily within a local or regional area.

Making a Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes involved in sustaining the activity.

Breaking Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.