Which of the Following Statements About the FASB Accounting Standards

question 63

Multiple Choice

Which of the following statements about the FASB Accounting Standards Codification is false?

• A) The Codification is currently the only authoritative source of U.S. GAAP.
• B) The purpose of creating the Codification was to simplify user access to authoritative U.S. GAAP.
• C) The framework of the Codification contains six levels, which are increasingly more specific.
• D) The six levels contained within the Codification framework are hierarchical in nature, such that the higher levels are considered to be more authoritative than the lower levels.

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Definitions:

Commencing Organisation

The process of starting up a new business or organization, including the steps of planning, financing, and implementing business operations.

Feedforward

A control mechanism that anticipates and regulates performance based on predictions and external inputs before feedback is received.

Logical Sequence

The orderly and coherent arrangement of steps or events following a logically connected and successive pattern.

Corporate Strategy

A comprehensive plan detailing a business's objectives and the methods it will employ to achieve its goals.