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:

Overcome Resistance

The process of addressing and mitigating objections or reluctance in order to persuade or achieve cooperation.

Price

The amount of money expected, required, or given in payment for something.

Persuasive Claims

Arguments constructed to persuade the audience by appealing to logic, emotions, or ethics to support a position or action.

Deductive Sequence

A method of reasoning or presenting information that starts with a general statement or hypothesis and proceeds to reach a specific conclusion.