The FASB Accounting Standards Codification Is Expected to Provide All

question 15

Multiple Choice

The FASB Accounting Standards Codification is expected to provide all of the following benefits except

• A) to reduce the research time necessary to solve an accounting research issue.
• B) to codify authoritative support such as results of academic research.
• C) to provide real-time updates as new standards are issued.
• D) to improve the usability of the authoritative accounting literature.

---

Definitions:

Price Remains The Same

A condition where the cost of a good or service does not change over a period of time.

Substitution Bias

Substitution bias occurs in inflation measurement and refers to the tendency of consumers to change their purchasing habits away from goods that have increased in price to cheaper alternatives, which is not always fully captured by price indexes.

CPI

The Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Consumer Substitution

The tendency of consumers to switch from one good to another in response to changes in relative prices, keeping their level of satisfaction or utility constant.