The Agreement in 2002 by the FASB and IASB to Develop

question 75

Multiple Choice

The agreement in 2002 by the FASB and IASB to develop high quality, compatible accounting standards that could be used by both domestic and cross-border financial reporting was called the

• A) International Accounting Standards agreement
• B) Financial Accounting Standards Board Global agreement
• C) Norwalk agreement
• D) United GAAP agreement

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Definitions:

Authorized

Officially given permission or power to do something or to act in a certain capacity.

Implied Authority

Authority that is created not by an explicit oral or written agreement but by implication or inference. In agency law, implied authority of the agent can arise from custom, from the position the agent occupies, or from being reasonably necessary to carry out express authority.

Express Authority

Authority expressly given by one party to another. In agency law, an agent has express authority to act for a principal if both parties agree, orally or in writing, that an agency relationship exists in which the agent has the power (authority) to act in the place of, and on behalf of, the principal.

Exclusive Territory

A designated area or market granted to an individual or entity with the exclusive right to sell or distribute goods or services within it.