The SEC Study of a Principles-Based System Identifies Each of the Following

question 5

Multiple Choice

The SEC study of a principles-based system identifies each of the following characteristics that should guide standards setting except for:

• A) Be based on an improved and consistently applied conceptual framework
• B) Clearly state the accounting objective of the standard
• C) Minimize exceptions from the standards
• D) Minimize the detail and structure so that the standard can be operationalized and applied on a consistent basis

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Definitions:

Key Element

A fundamental component or aspect that is necessary for the functionality or efficacy of a system, document, or process.

Unanimous Consent

Agreement on a matter by all members of a group, committee, or assembly without any opposition.

Manage the Business

The process of overseeing and making decisions about the operations, finances, and strategy of a business to ensure its success and sustainability.

Three Partners

Refers to a business structure where three individuals engage in a partnership to conduct business together.