Which pair of bar chart elements depict the correct relationship between information risk and cost of information?

What is information risk?

When several groups of financial statements users demand different reports, the practical and most efficient alternative is to

Accounting standards are

The AICPA is actively involved in standard setting in America, and created several units that evolved through the years. Which one is the correct sequence?

Political action, in the context of standard setting, is illustrated by

General purpose statements serve

The risk that financial statements could be inaccurate because of bias or misrepresentation

It is the largest professional group of accountants based in America, responsible for the Uniform CPA examination, professional development, and research.

Different groups are interested in how financial statements are to be presented. What is the most compelling reason for this interest?

This agency supervises corporations and partnerships. Because of this supervisory powers, it also influences standard setting in the accountancy profession.

After implementation, standards may have narrow interpretation or limited scope application. This narrow interpretation or application in limited scope is applicable only in this instance.

The IFRS Foundation sets standard through this body.

FASB standards and earlier APB Opinions were preceded by

Accountants have the freedom and discretion to prepare financial statements that suit the needs of different users.

After receiving comments from the public, IASB staff summarizes these comments for discussion. The Board may decide to issue a second exposure draft.

General purpose statements are complete and useful for all information needs.

Users of information may use all available influence in order to have their interests considered in the development of standards.

Users generally have uniform information needs. For this reason, general purpose statements will satisfy all their requirements.

Uniform standards may not eliminate, but may reduce, information risk.

Financial statements prepared by accountants could be biased and fail to present fairly the economic information they report. Standards may reduce, but not eliminate these risks.

The set of standards developed by the accounting profession are “generally accepted” because of universal application and acceptance over time.

Standards are necessary because

Users of financial information have both coinciding and conflicting needs. This means that they could agree or disagree even on the same issues and requirements.

Which statement is correct?

Which statement best describes scientific and accounting principles?

Why is information risk always a possibility (choose the most valid reasons)?

This is approved by simple majority of the IASB and sets forth IASB’s working plan. The needs of all users of financial information are considered.

This is issued by the IASB when it consults the public regarding a proposed standard. Comments are invited for submission within a 120-day period for major projects

Standards seek a balance between

This phase is carried out two years after a standard is released, and could lead to findings that will be included in a future agenda.

A set of standards developed by the International Accounting Standards Board

Governed by and observes generally accepted accounting principles or international financial reporting standards.

Convergence of accounting standards is designed to