Which of the Following Propositions Is Not True If We

question 3

Multiple Choice

Which of the following propositions is not true if we accept the notion that accounting regulation is considered to be the output of a political process?

• A) Financial accounting is objective, neutral and apolitical.
• B) Standard-setting bodies encourage affected parties to make submissions on draft versions of the proposed accounting standards.
• C) Many decisions that are made are the outcome of compromise.
• D) If the social welfare impact of accounting policies were ignored, the basis for the existence of a regulatory body would disappear.

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Definitions:

Unknown Quantities

Refers to amounts or numbers that are not specifically known or determined.

Proportion

An installment, section, or count contemplated in proportion to its total mass.

Market Share

The portion of a market controlled by a particular company or product.

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, not necessarily coinciding with the calendar year.