The Purpose of the FASAB Is to Develop and Issue

question 40

Multiple Choice

The purpose of the FASAB is to develop and issue federal accounting standards.
Which of the following is not accurate?

• A) FASAB has developed a conceptual framework to guide the Board in the development of new standards. The Concept Statements are authoritative and must be followed when reporting the financial results for federal government entities.
• B) The Board is considered "advisory" in that the standards must be approved by the three founding organizations Treasury, OMB, and GAO.
• C) The Concept Statements developed by the FASAB are not authoritative, but they identify user needs, the objectives of the financial reports, and definitions of the reporting entity and the elements of the financial statements.
• D) The standards called Statements of Federal Financial Accounting Standards are recognized as the highest level of authoritative standard in the AICPA's Code of Professional Conduct.

---

Definitions:

Exclusivity Contracts

Legal agreements that restrict parties from engaging in similar agreements with others, often used in business to secure unique partnerships or market advantages.

Soft-Drink Manufacturers

Companies engaged in the production and sale of non-alcoholic beverages such as sodas, juices, or carbonated drinks.

Anti-Racist Pedagogy

An educational approach aimed at understanding and challenging the structures and behaviors that perpetuate systemic racism.

Racism

Prejudice, discrimination, or antagonism directed against individuals or groups based on their race or ethnicity.