Ch. 6 - quiz Flashcards
Financial reporting and disclosure regulation has a long history in the
US; strict rules for the financial reporting and disclosure of exchangetraded companies have been in place since the end of the civil war.
True or False
False
During the early 1900s, frequent bank runs and stock market panics
added to economic uncertainty.
True or False
True
The 1933 Securities Act and 1934 Securities Exchange Act aim to
protect investors by regulating financial reporting and disclosure
True or False
True
Following financial disclosure requirements of the NYSE, already in the 1920s all listed companies disclosed full sets of financial
statements, i.e., balance sheets, P&L, and cash flow statements.
True or False
False
In the early 2000s, the FASB and the IASB closely coordinated their work, with the aim to make the existing financial reporting standards fully compatible
True or False
True
What statement best describes the role and status of the FASB?
A. The FASB is a federal agency established in 1934 that oversees and regulates securities markets and its participants
B. The FASB is a private organization founded in 1973 which is tasked with establishing and improving financial accounting and reporting
C. The FASB is a federal agency founded in 1973 which is tasked with establishing and improving financial accounting and reporting
D. The FASB is a private organization established in 1934 that oversees and regulates securities markets and its participants
B
The FASB Conceptual Framework
A. The FASB framework and the IASB framework differ fundamentally from each other, there is little common ground between the two.
B. The FASB framework was developed by the FASB in the 1980s and 1990s. Based on the early work of the FASB, the IASB then developed a new framework in the early 2000s. Thus, the FASB framework is the more traditional framework, while the IASB
framework is the more modern framework.
C. FASB framework and the IASB framework are generally quite similar, and some parts of the FASB framework and the IASB framework are even identical because they were jointly developed by both
standards setters.
D. The FASB framework and the IASB framework are identical because the two frameworks were completely jointly developed by both standards setters
C
