All the Following Are True Regarding the FASB Accounting Standards

question 19

Multiple Choice

All the following are true regarding the FASB Accounting Standards Codification except:

• A) The Codification changes the way GAAP is documented, presented, and updated.
• B) The goal of the Codification was to provide one place where all authoritative literature about a particular topic could be found.
• C) The purpose of the Codification is to create new GAAP.
• D) The Codification was created to simplify user access.

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Definitions:

Lowest Terms

The simplest form of a fraction when both the numerator and the denominator are reduced to their smallest possible numbers.

Common Shares

Equity investments representing ownership rights in a corporation, entitling holders to vote on company matters and receive dividends.

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to their smallest values.

Purchasing Power

The value of currency expressed in terms of the amount of goods or services that one unit of money can buy.