The International Accounting Standards Board

question 48

Multiple Choice

The International Accounting Standards Board

• A) can issue a new accounting standard if the majority of the board members agree.
• B) was formed to replace the Financial Accounting Standards Board.
• C) develops standards but has no power to enforce the standards.
• D) was formed to supervise the accounting practices that U.S. firms follow.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Operation

The day-to-day activities and procedures businesses employ to produce goods or services and function effectively.

Potential New Business

Opportunities or prospects that may lead to the inauguration or expansion of operations, representing potential sources of revenue or growth.

Worthwhile Investment

An investment that promises a good return for the amount of money or time put in.