Which of the Following Was Not a Criticism of the Development

question 23

Multiple Choice

Which of the following was not a criticism of the development of accounting standards by the Accounting Principles Board?

• A) The independence of the members of the APB. The individuals serving on the board had full-time responsibilities elsewhere that might influence their views of certain issues.
• B) The structure of the board. The largest eight public accounting firms (at that time) were automatically awarded one member, and there were usually five or six other public accountants on the APB.
• C) Harmonization. The accounting standards developed were dissimilar to those developed by the International Accounting Standards Committee.
• D) Response time. The emerging accounting problems were not being investigated and solved quickly enough by the part-time members.

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Definitions:

Nominal Dollars

Nominal dollars refer to the amount of money expressed in current values, without adjustment for inflation, representing the "face value" of currency.

Fixed Incomes

Fixed incomes refer to types of investment that pay regular interest or dividends to investors and have the principal amount returned at maturity.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the face value of borrowing costs or investment returns.

Relative Prices

The price of a good or service compared to the price of another, indicating the trade-off between choosing one over the other.