In the 1990s, the FASB Considered Making a New Rule

question 53

Multiple Choice

In the 1990s, the FASB considered making a new rule to count stock option awards by companies as expenses. Some companies protested to the FASB, and to Congress, and the FASB at that time decided not to make the new rule. This is an example of what type of reaction to accounting measurement?

• A) Acting to modify the measurement system before it goes into effect
• B) Doing what is desired in response to being measured
• C) Doing what looks good on the measurement system, even though it was not what was actually desired
• D) Lying

---

Definitions:

Acting with Order

The practice of performing tasks and activities in a structured, organized manner to achieve goals efficiently.

Making Job Assignments

The act of delegating specific tasks or responsibilities to employees in order to ensure efficient operation within an organization.

Building Teams

The process of creating and organizing a group of people to work together effectively towards a common goal.

Daily Work Activities

The routine tasks and duties performed as part of one's job or occupation on a day-to-day basis.