The FASB and IASB Joint Conceptual Framework Differs from the U.S.conceptual

question 40

Multiple Choice

The FASB and IASB joint conceptual framework differs from the U.S.conceptual framework in that:

• A)The joint conceptual framework identifies the concept of representational faithfulness as an element of reliability in determining useful information
• B)The joint conceptual framework identifies the concept of representational faithfulness as an element of relevance in determining useful information
• C)The joint conceptual framework excludes representational faithfulness from the determination of useful information
• D)The joint conceptual framework considers representational faithfulness as a foundational element of useful information

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Definitions:

U.S. Tax Court

A federal court that provides taxpayers a forum to dispute tax deficiencies assessed by the IRS before paying the disputed amount.

Tax Rate Structure

A scheme that defines how tax rates progress based on variables such as income level, corporate profits, or other bases.

Proportional

Relating to a relationship between variables where they increase or decrease at the same rate.

Form 1040EZ

A simplified tax form used in the United States for individuals with straightforward tax situations, now replaced by the redesigned IRS Form 1040.