The Most Accurate Statement of the FASB's Position on Conservative

question 53

Multiple Choice

The most accurate statement of the FASB's position on conservative accounting is:

• A) The FASB favors conservatism in both its conceptual framework and in all of its existing standards.
• B) The FASB is against conservatism in its conceptual framework and in all of its existing standards.
• C) The FASB is against conservatism all of its existing standards, but in its conceptual framework it favors conservative accounting.
• D) The FASB is against conservatism in its conceptual framework, but some of the existing standards use a conservative approach.

---

Definitions:

Forfeiture

The loss of property or rights as a penalty for wrongdoing, often related to criminal activity or breaches of contract.

Missed Payment

Failure to make a scheduled payment on a loan or other financial obligation by the due date.

Strict Foreclosure

A legal process by which a secured lender can take possession of the collateral property without the need to sell it, typically when the value of the collateral is less than the debt owed.

Satisfaction of Debt

Satisfaction of Debt is the fulfillment of a financial obligation, such as the repayment of a loan, thereby releasing the debtor from further liability.