The FASB's decisions are often based on an investor's need to form an opinion about a company's future cash flows.

Question

Quizplus · Accepted Answer

The FASB (Financial Accounting Standards Board) is responsible for setting accounting standards in the United States. Their decisions are primarily based on improving financial reporting and providing useful information to investors, which includes information about a company's future cash flows.

The FASB's Decisions Are Often Based on an Investor's Need