Which of the Following Is Not True Concerning the FASB

question 73

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 very different.
• E)The two standard-setting bodies are currently working to develop a common conceptual framework for financial reporting.

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Definitions:

Closed-Loop

Closed-Loop refers to a system or process that uses feedback to control states or outputs, aiming for stable operation and error correction.

Open-Loop System

A control mechanism that operates without using feedback to adjust its input based on the outputs.

More Complex

Referring to a system or process that has a greater level of intricacy or difficulty.

Servo Drive

A special electronic amplifier used to power and control servomechanisms, providing precise control of angular or linear position, velocity, and acceleration.