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09.07.2022 - 01:16

Financial accounting standard-setting in the United States A) can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic. B) is based solely on research and empirical

Question:

Financial accounting standard-setting in the United States:

A) can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic.

B) is based solely on research and empirical findings.

C) is a legalistic process based on rules promulgated by governmental agencies.

D) is democratic in the sense that a majority of accountants must agree with a standard before it becomes enforceable.

Answers (1)

Gracie April 13, 2023 в 00:23

The answer is A) can be described as a social process which reflects political actions of various interested user groups as well as a product of research and logic. Explanation: Financial accounting standard-setting in the United States is a complex process that involves various interested user groups such as investors, financial statement users, creditors, regulators, and accounting professionals. It is influenced by political actions and demands of these groups as well as a product of research and logic. The Financial Accounting Standards Board (FASB) is the primary standard-setting body in the US, and it develops and updates accounting standards through a deliberative process that involves feedback from stakeholders and extensive research. The process is not purely based on research and empirical findings (option B), nor is it a legalistic process based on rules promulgated by government agencies (option C). Additionally, while the opinions of accountants are taken into consideration, the standard-setting process is not democratic in the sense that a majority of accountants must agree with a standard before it becomes enforceable (option D).

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