The Purpose of the FASAB Is to Develop and Issue

question 53

Multiple Choice

The purpose of the FASAB is to develop and issue federal accounting standards. The Board comprises ten members. What is the makeup of the board?

• A) Two from the executive branch, two from the legislative branch, two who are appointed by the AICPA and five who are not employees of the federal government.
• B) Three from the executive branch, three from the legislative branch, and four who are not employees of the federal government.
• C) One from the executive branch, one from the legislative branch, two who are appointed by the AICPA and six who are not employees of the federal government.
• D) Two from the executive branch, two from the legislative branch, and six who are not employees of the federal government.

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Definitions:

Investment Turnover

A measure of a company's ability to use its assets to generate sales or revenue, indicating how efficiently the investments are being used.

Activity Base

A measure used as a basis for allocating costs in activity-based costing, relating costs to the activities that drive the need for those costs.

Revenue

The total amount of income generated by the sale of goods or services related to a company's main operations.

Investment Turnover

A ratio measuring the ability of a company to generate sales or revenue from its investments, usually indicating how efficiently the investments are used.