Which of the Following Is Not True Concerning the FASB

question 67

Multiple Choice

Which of the following is not true concerning the FASB and the IASB conceptual frameworks?

• A)Both the FASB and the IASB rely on a conceptual framework to guide their standard-setting decisions.
• B)The conceptual framework is not a rigorous set of principles from which standard setters can logically deduce appropriate financial reporting standards.
• C)The purpose of a conceptual framework is to guide standard-setting decisions in order to enhance the quality and consistency of those decisions.
• D)The FASB and the IASB have separately developed their conceptual frameworks, and those frameworks are similar.
• E)The two standard-setting bodies are refusing to develop a common conceptual framework for financial reporting.

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Definitions:

Cultural Differences

Variations in the beliefs, values, habits, and practices of different groups based on their ethnic, geographic, religious, or societal norms.

Causality

The relationship between cause and effect, where one event leads to the outcome of another.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.

Suicide

Voluntarily causing one's own demise.