Which of the Following Statements Is True About the IASB's

question 30

Multiple Choice

Which of the following statements is true about the IASB's approach to accounting standard setting?

• A)The IASB approach is very similar to the rules-oriented basis favored by the FASB in the United States.
• B)The IASB uses a principles-based approach to standards formulation.
• C)The IASB pronouncements have been called a "cookbook" of accounting standards.
• D)The Sarbanes-Oxley Act requires the FASB to move toward the approach for standard setting used by the IASB.

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Definitions:

Price Hike

An increase in the price of goods or services, often due to factors like inflation, demand, or rising costs.

Traceable Fixed Expense

A fixed cost that can be directly associated with a specific business segment or department.

Price Reduction

A decrease in the selling price of goods or services, typically to attract customers or boost sales.

Traceable Fixed Expense

Costs that are constant and can be directly attributed to a particular department, project, or business segment.