If an FASB Standard Creates a New Principle, Expresses Preference

question 17

True/False

If an FASB standard creates a new principle, expresses preference for, or rejects a specific accounting principle, the change is considered clearly acceptable.

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Definitions:

Estimate

To make an approximate judgment or calculation of the value, number, quantity, or extent of something.

Winner's Curse

A phenomenon that occurs in auctions where the winning bidder pays more than what the item is actually worth, usually because of incomplete information or misjudgment.

Common-value Auction

an auction format where the item for sale is of the same value to all bidders, but the bidders have different information about the item's actual value.

Too Optimistic

Pertains to a situation or mindset where expectations are unrealistically positive, potentially overlooking possible risks or challenges.