As the first step in the development of generally accepted accounting principles, the FASB writes a discussion memorandum, which explains the topic being considered.

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Quizplus · Accepted Answer

This is correct. The FASB does indeed write a discussion memorandum as the first step in the development of generally accepted accounting principles. The memorandum explains the topic being considered, and is used to solicit feedback and input from stakeholders before developing a more formal standard.

As the First Step in the Development of Generally Accepted