Which of the following statements is true?
A)In order to remain impartial, the FASB discourages public input during development of standards.
B)FASB accounting standards are the result of clearly defined objectives, an integrated body of theory, and the known consequences of actions.
C)The FASB deliberates and issues accounting standards only after receiving a formal letter of request from the SEC.
D)Accounting standards, which reflect social decisions, are often the result of compromise.

Question

Quizplus · Accepted Answer

Accounting standards are indeed reflective of social decisions and often result from compromise among various stakeholders, including businesses, regulators, and users of financial statements. This is because the development of these standards involves considering the diverse interests and perspectives of different parties, leading to outcomes that may not fully satisfy any single group but are acceptable to all involved.

Which of the Following Statements Is True