Which of the Following Statements Regarding Standards Contained in the FASB

question 70

Multiple Choice

Which of the following statements regarding Standards contained in the FASB Accounting Standards Codification ASC) is true?

• A) They have the force of law, and failure to follow them can be prosecuted.
• B) They apply to financial reporting by all U.S. companies.
• C) They were created in 2009 when the ASC was created and did not exist prior to that time.
• D) They have to be approved by the SEC before they become effective.

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Definitions:

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses.

Horizontal Mergers

Mergers between companies that operate in the same industry, often aimed at creating synergies, reducing competition, or achieving economies of scale.

Vertical Mergers

Mergers between companies that operate at different stages within an industry's supply chain, aiming to increase synergies and efficiency.

IRS

The Internal Revenue Service, the U.S. federal agency responsible for administering and enforcing the tax laws and collecting taxes.