The Financial Accounting Standards Board Only Sets Standards for Accountants

question 191

True/False

The Financial Accounting Standards Board only sets standards for accountants in the private sector;however,government accountants have no universally accepted procedures that they must follow.

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Definitions:

Capital Budgeting

The process used by organizations to evaluate and select major investment projects based on their potential to generate additional profits.

Dividends

Return on capital of corporation paid by company to shareholders in either cash or stock; payments made out of a firm’s earnings to its owners, either in cash or stock.

Foreign Subsidiary

A foreign subsidiary is a company owned or controlled by another company, referred to as the parent company, which is located in a country different from the subsidiary.

Dollar/Peso Exchange Rate

The rate at which the currency of the United States (dollar) can be exchanged for the currency of countries using the peso.