The FASB and IASB Are Working Jointly to Develop a Revised

question 239

Multiple Choice

The FASB and IASB are working jointly to develop a revised, coordinated set of financial reporting objectives.They envision that the

• A)primary user groups are present and potential providers of resources, including equity investors and creditors.
• B)users want information useful for making resource allocation decisions.
• C)users want information useful for making decisions about protecting and enhancing their investments.
• D)proposed reporting objectives would also specify that firms should prepare financial reports from the perspective of the reporting entity (entity perspective).
• E)all of the above

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Definitions:

Market Value Method

The Market Value Method is an accounting practice of valuing assets based on their current market prices.

Book Value Method

An accounting technique that determines the value of an asset on a balance sheet by its historical cost minus any accumulated depreciation.

Loss On Bond Conversion

An accounting entry that represents the difference when the conversion of debt into stock is at a value lower than its market price.

Straight-line Amortization

The method of gradually reducing the cost of an intangible asset over its useful life in a uniform manner.