The Purpose of Statements of Financial Accounting Concepts Is to

question 25

Multiple Choice

The purpose of Statements of Financial Accounting Concepts is to

• A)establish GAAP.
• B)modify or extend the existing FASB Standards Statement.
• C)form a conceptual framework for solving existing and emerging problems.
• D)determine the need for FASB involvement in an emerging issue.

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Definitions:

Confidence interval estimate

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, given a specified level of confidence.

Standard deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values in a data set are.

Electric usage

The amount of electrical energy consumed by a residence, industry, or equipment in a specific period.

Standard error of the mean

The standard deviation of the sampling distribution of the sample mean, measuring how far the sample mean of the data is likely to be from the true population mean.