Which of the Following Statements Is True Regarding the Conceptual

question 37

Multiple Choice

Which of the following statements is true regarding the conceptual frameworks developed by FASB and IASB?

• A) The economic entity assumption is not part of either framework
• B) The monetary unit assumption is part of each framework and the U.S. dollar is established as the common unit of currency.
• C) Both have similar measurement principles based on historical cost and fair value.
• D) The conceptual frameworks underlying U.S. GAAP and IFRS are dissimilar.

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Definitions:

Biological Motives

Innate motivations driven by biological needs that are essential for survival, such as hunger, thirst, and the drive for self-preservation.

Fundamental Attribution Error

A cognitive bias where people overemphasize personality traits and underestimate situational factors when explaining other people's behavior.

Situational Influences

External factors or environmental conditions that impact an individual's behavior, attitudes, or actions in a given context.

Personal Dispositions

Patterns of thought, feeling, and behavior that are unique to an individual, contributing to how one responds to their environment.