The Passage of a New FASB Standards Statement Requires the Support

question 19

True/False

The passage of a new FASB Standards Statement requires the support of five of the seven board members.

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Definitions:

Securities Act of 1933

A U.S. legislation enacted as a result of the stock market crash of 1929, requiring that offers and sales of securities are registered, providing investors with truthful information on securities.

Liability

Legal responsibility or obligation that arises from actions or as a result of a contractual agreement, potentially requiring the liable party to compensate for damages or losses incurred.

Underwriters

Underwriters are entities, such as banks or financial institutions, that assume the risk associated with issuing and selling securities in the market.

Racketeer Influenced and Corrupt Organizations Act

A U.S. federal law aimed at combating organized crime by allowing extended penalties for criminal acts performed as part of an ongoing criminal organization.