What Has the Accounting Profession Adopted to Guide the Practice

question 66

Multiple Choice

What has the accounting profession adopted to guide the practice of financial accounting in order to provide external shareholders with relevant, reliable, consistent, and comparable financial information?

• A) Formal Accounting Rules and Procedures (FARP)
• B) Standardized Accounting Procedures (SAP)
• C) International Financial Reporting Standards (IFRS)
• D) International Accounting Financial Rules (IAFR)

---

Definitions:

Dividend Growth Model

A valuation method that estimates the price of a company's stock based on the future dividends it is expected to pay, which are assumed to grow at a constant rate.

Current Stock Price

The price at which a stock is currently trading on the stock market.

Discount Rate

It refers to the rate used in discounted cash flow analysis for the purpose of calculating the present value of future expected cash flows.