The SEC's 2003 Report to the Congress on "Principles-Based" Accounting

question 25

Multiple Choice

The SEC's 2003 report to the Congress on "principles-based" accounting observed that the first characteristic of objectives-based standards,as dictated by the Sarbanes-Oxley Act,is that any standard must be based on

• A) the cost-benefit test.
• B) an improved and consistently applied framework.
• C) qualitative characteristics.
• D) transparency.

---

Definitions:

Schedule Flexibility

The ability to adjust work hours or duties to accommodate different needs or preferences, often seen as a benefit in employment.

Commuting Problems

Challenges and issues faced by individuals when traveling between their place of residence and workplace, often involving time, cost, and convenience.

Vision

A foresight or strategic plan that outlines the goals and direction of a business or individual.

Strategy

The business will achieve its goals.