Which of the Following Statements Is Not Correct

question 89

Multiple Choice

Which of the following statements is not correct?

• A)The Financial Accounting Standards Board is an independent organization.
• B)The Securities and Exchange Commission (SEC)issues the Statements of Financial Accounting Standards.
• C)An act of law gave the SEC the authority to determine the form and content of accounting reports filed by companies under its jurisdiction.
• D)Statements issued by the Financial Accounting Standards Board (FASB)are binding on the members of the American Institute of Certified Public Accountants (AICPA).

---

Definitions:

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Principal

This term refers to the original sum of money borrowed in a loan or the initial amount of investment before earnings or losses.

Expansionary Gap

A situation where the output of an economy is greater than the full employment output, often leading to inflation.