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

Answer 1

Answer:

Financial accounting standard-setting in the United States can be described as a social process which reflects political actions of various user groups as well as a product of research and logic.Hence,option A is correct.

Explanation:

The financial accounting standard-setting in the U.S. is heavily rule-based.By rule-based,I mean there is a strong government interest in the way corporations report their financial performance to various stakeholder groups.

Serbanes-Oxley Act is a strong indication  that the political class is keeping a tab on the financial reporting framework and results of the various companies operating in the different sectors of the economy.

Answer 2

Answer:

The correct answer is letter "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:

The Financial Accounting Standards Board or FASB is the U.S. agency in charge of setting the accounting rules for non-profit and for-profit organizations. The FASB modifies and reviews the Generally Accepted Accounting Principles (GAAP) which is the code every entity in the U.S. while methodically record-keeping their transactions.

The standard setting of the accounting principles reflects the economic operations of a business according to its surrounding physical, social and political environment.