The Joint Efforts of the FASB and the IASB to Set

question 22

Multiple Choice

The joint efforts of the FASB and the IASB to set forth qualitative characteristics of financial reporting information have led to which of the following tentative pervasive constraints?

• A)cost, only
• B)materiality, only
• C)understandability, only
• D)timeliness, only
• E)materiality and cost

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Definitions:

Diaphragm

A major muscle involved in breathing, separating the thoracic cavity from the abdominal cavity.

Ligamentum Arteriosum

A small ligament that is the remnant of the ductus arteriosus formed within 3 weeks after birth.

Pulmonary Trunk

A major artery that conducts blood from the right ventricle of the heart to the lungs for oxygenation.

Aorta

The largest artery in the body, originating from the left ventricle of the heart, and supplying oxygenated blood to the circulatory system.