The Major Distinction Between the Financial Accounting Standards Board (FASB)

question 51

Multiple Choice

The major distinction between the Financial Accounting Standards Board (FASB) and its predecessor, the Accounting Principles Board (APB) , is

• A) the FASB issues exposure drafts of proposed standards.
• B) all members of the FASB are fully remunerated, serve full time, and are independent of any companies or institutions.
• C) all members of the FASB possess extensive experience in financial reporting.
• D) a majority of the members of the FASB are CPAs drawn from public practice.

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Definitions:

Dollar Sales

A metric that represents the total monetary value of all sales transactions within a specific period, often used in retail and sales analysis.

Target Profit

The desired level of profit that a business plans to achieve within a specific period.

Contribution Format

A format for income statements where all variable expenses are subtracted from sales to calculate contribution margin, which then has fixed expenses subtracted to determine net operating income.

Income Statement

A financial report that shows a company's financial performance over a specific period, including revenues, expenses, and profit or loss.