An argument for a detailed, "rules-based" approach to standard-setting is
A) It is simple to come up with rules that cover all possible situations.
B) It discourages people from designing transactions that just meet, or just fail, the specific rules.
C) It will result in a very short list of accounting standards.
D) It gives accountants "safe harbors" for making particular decisions, since they will be able to point clearly to the specific rules.

Question

Quizplus · Accepted Answer

A rules-based approach provides clear, specific guidelines for accountants, offering "safe harbors" for decision-making by allowing them to refer directly to detailed rules.

An Argument for a Detailed, "Rules-Based" Approach to Standard-Setting Is