Which of the Following Is Not True Regarding Accounting Series

question 47

Multiple Choice

Which of the following is not true regarding Accounting Series Release No. 4?

• A)It stated that financial statements filed with the SEC and prepared in accordance with accounting principles for which there is no substantial authoritative support would be presumed to be misleading.
• B)It implied that the SEC might in the future determine acceptable accounting practices and mandate methods to be used in reports filed with it.
• C)It established an authoritative body for the development of accounting standards.
• D)It indicated that the SEC was growing impatient with the accounting profession.

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Definitions:

Main Effect

The overall impact of an independent variable on a dependent variable in a factorial design, disregarding interactions.

Rule Of 72

A simple formula used to estimate the number of years required to double the invested money at a given annual rate of return, by dividing 72 by the expected rate of interest.

Compounding

Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.

Compounded Monthly

A process where interest earned on an investment is calculated and added to the principal each month, thereby earning interest in subsequent months.