What Is the Role of the Accounting Profession in the US

question 18

Multiple Choice

What is the role of the accounting profession in the US with regard to stipulating accounting standards?

• A) It has the authority to develop and issue accounting standards.
• B) It has been delegated responsibility from the Securities and Exchange Commission, providing it performs such duties diligently.
• C) Indirect authority. Standards are issued by the Accounting Principles Board, a committee of the accounting professional bodies.
• D) No authority. Standards are issued by the Federal Accounting Standards Board, which is independent of the accounting profession.

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Definitions:

Defense Mechanism

Psychological strategies used by individuals unconsciously to protect themselves from anxiety or to cope with reality.

Catharsis

Catharsis is the process of releasing and thereby providing relief from strong or repressed emotions, often through activities like art, writing, or conversation.

Maladaptive Emotional Responses

Emotional reactions that are counterproductive and interfere with a person's ability to cope with or adjust to situations.

Rigid and Logical Thinking

A cognitive style characterized by inflexible adherence to rules or the logical analysis of information, often at the expense of emotional understanding or creative problem-solving.