What Prompted the Development of the Accounting Standards Codification

question 63

Multiple Choice

What prompted the development of the Accounting Standards Codification?

• A) The decision to merge with IFRS made it necessary to redesign the Codification.
• B) The large volume of diverse and complex standards was difficult to use.
• C) Businesses are more complex now and need better guidance.
• D) Overuse of judgment led to financial frauds.

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Definitions:

Source Data Processing

The handling or manipulation of raw data to prepare it for further analysis, including validation, sorting, reduction, and transformation.

MRP II

Stands for Manufacturing Resource Planning, an evolution of Material Requirements Planning (MRP) that integrates additional data, such as employee and financial needs, to support manufacturing processes.

MRP

Material Requirements Planning; a system that calculates the materials and components needed to manufacture a product.

ERP

Enterprise Resource Planning; a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, and supply chain operations.