Which of the following statements is true regarding common law?
A) In common law countries, there are generally more statutes written into the laws.
B) In common law countries, there is less reliance on interpretation by the courts.
C) Because more details are written into U.S.law, FASB has shorter and more general accounting standards than most countries.
D) The common law system has its roots in the United Kingdom.

Question

Quizplus · Accepted Answer

The common law system has its origins in the United Kingdom, and has been adopted in many countries that were formerly colonies of the UK, including the United States. Common law relies heavily on court decisions and legal precedents rather than on statutory law. FASB's accounting standards may be shorter and more general than those of some other countries because of the predominance of common law in the US legal system, which allows for greater flexibility in interpreting legal principles.

Which of the Following Statements Is True Regarding Common Law