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:

Guarantor

A guarantor is a person or entity that agrees to be responsible for another's debt or obligations, should the original party fail to meet their responsibilities.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be legally enforceable.

Indemnity

A security or protection against a loss or other financial burden.