In Order to Preserve Independence and Impartiality, Financial Accounting Standards

question 26

Multiple Choice

In order to preserve independence and impartiality, Financial Accounting Standards Board (FASB) members are required to:

• A)serve the board for the rest of their lives once they are appointed.
• B)sever all ties with any firms or institutions they served prior to joining the board.
• C)sign a non-disclosure agreement and hand over all information of their previous companies to the board.
• D)pass a rigorous two-day, four-part examination on major accounting concepts.

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Definitions:

Depressants

A category of drugs that reduce neural activity and slow down the functions of the brain and body.

Psychoactive Drugs

Substances that change brain function, resulting in alterations in perception, mood, consciousness, cognition, or behavior.

Stimulants

Psychoactive drugs, including caffeine, nicotine, amphetamines, and cocaine, that increase the central nervous system’s activity.

Hallucinogens

Psychoactive drugs that modify a person’s perceptual experiences and produce visual images that are not real.