What Was the "Norwalk Agreement

question 6

Multiple Choice

What was the "Norwalk Agreement?"

• A) A pledge between the Financial Accounting Standards Board in the U.S. and the IASB to make their reporting standards compatible.
• B) A concession by the Financial Accounting Standards Board in the U.S. to adopt IFRS as soon as possible.
• C) It is a treaty between the United States and the European Union to make their accounting standards converge.
• D) It was an agreement signed in Norwalk, Connecticut in 2002 to make English the official language of the IASB.

---

Definitions:

Interest Rate

The percentage charged on a loan or paid on savings, representing the cost of borrowing or the reward for saving.

Present Value

The present value of an anticipated amount of money or series of payments, considering a certain rate of return.

Net Present Value

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows over a period of time.

Interest Rate

The fraction of a loan subject to interest charges to the borrower, usually shown as an annual percentage of the remaining loan balance.