Which of the Following Is Not True About the FASB

question 15

Multiple Choice

Which of the following is not true about the FASB?

• A)It considers the economic consequences of proposed accounting policies.
• B)It has seriously considered the question of the desirability of corporate social responsibility accounting.
• C)It is sensitive to whether there are sufficient benefits to external users to warrant the imposition of new accounting standards.
• D)The FASB has commissioned studies to aid in assessing the effects of proposed standards on firms.

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Definitions:

Hostile Takeovers

Hostile takeovers occur when a company acquires another company against the wishes of the target company's management and board of directors.

WACC

Weighted Average Cost of Capital, or WACC, is a financial metric that calculates the cost of capital for a business, weighting each capital segment according to its relative proportion.

Discount Rate

This is the interest rate applied in calculating the present value of cash flows that are expected in the future, using the discounted cash flow approach.

Valuation Purposes

The process of determining the present worth of an asset or a company, often for investment analysis, buying or selling.