quiz bank2 - 1. The SEC relies on the AICPA and FASB to...

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1. The SEC relies on the AICPA and FASB to regulate the accounting profession and develop and enforce accounting standards. True 2. Currently, both U.S. GAAP and the International Financial Reporting Standards are acceptable for international use. True 3. An effective capital allocation process a. promotes productivity. b. encourages innovation. c. provides an efficient market for buying and selling securities. d. all of these. 4. Members of the Financial Accounting Standards Board are a. employed by the American Institute of Certified Public Accountants (AICPA). b. part-time employees. c. required to hold a CPA certificate. d. independent of any other organization. 5. 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. 6. The idea of consistency does not mean that companies cannot switch from one accounting method to another. True 7. Revenues are realizable when assets received or held are readily convertible into cash or claims to cash. True 8. Companies consider only quantitative factors in determining whether an item is
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quiz bank2 - 1. The SEC relies on the AICPA and FASB to...

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