Once the FASB Has Established an Accounting Standard,the

question 5

Multiple Choice

Once the FASB has established an accounting standard,the

• A) standard is continually reviewed to see if modification is necessary.
• B) standard is not reviewed unless the SEC makes a complaint.
• C) task of reviewing the standard to see if modification is necessary is given to the AICPA.
• D) principle of consistency requires that no revisions ever be made to the standard.

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Definitions:

Median Voter

A theoretical concept in political science and economics suggesting that the outcome of a majority rule voting process will reflect the preferences of the median voter when preferences are single-peaked.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Fairness

Fairness relates to impartial and just treatment or behavior without favoritism or discrimination.

Personal Winnings

Personal winnings refer to the gains an individual acquires, which can derive from gambling, competitions, or any activities resulting in earnings beyond regular income.