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:

Accounts Payable

The amount of money that a company owes to its creditors for goods or services that it has received but not yet paid for.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, representing the individual's tax bracket.

Depreciation Life

The period over which a fixed asset is expected to depreciate until it reaches its salvage value.

Market Value

The ongoing rate at which you can buy or sell an asset or service within the open market.