Accounting Changes by the Financial Accounting Standards Board (FASB) in the US

question 27

Multiple Choice

Accounting changes by the Financial Accounting Standards Board (FASB) in the US:

• A) eliminated the "purchase method," allowing only the "pooling-of-interests" method for mergers and acquisitions
• B) eliminated the "pooling-of-interests" method, allowing only the "purchase method" for mergers and acquisitions
• C) allow for both the "purchase method" and the "pooling-of-interests" method for mergers and acquisitions
• D) none of the above

---

Definitions:

Grease the Wheels

An expression used to describe actions that facilitate or ease the progress of a process, activity, or operation, often implying making things run more smoothly and efficiently.

Political Business Cycle Theory

A theory suggesting that elected officials may manipulate economic policies to produce favorable economic conditions ahead of elections to increase their chances of reelection.

Discount Rate

The interest rate on the loans that the Fed makes to banks.

Re-Elected

The act of being elected again for the same position or office after completing a term.