In Order to Increase Comparability, the FASB and IASB Have

question 16

Multiple Choice

In order to increase comparability, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as

• A)convergence.
• B)monetary unit assumption.
• C)the cost principle.
• D)the fair value principle.

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Definitions:

Exchange-Traded Fund

An Exchange-Traded Fund (ETF) is a type of investment fund and exchange-traded product, the shares of which are traded on stock exchanges.

Market Beta

A measure of a stock's volatility in relation to the market; a beta greater than 1 indicates higher volatility than the market.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its market capitalization.

Composition

The makeup or structure of something, such as the arrangement and proportion of parts within a work of art or a financial portfolio.