Accounting standards are:
A)the result of a political process among groups with diverse interests.
B)presentation standards mandated by the Securities and Exchange Commission.
C)the state-of-the-art presentation of the science of accounting.
D)standards measuring the quality of safeguarding assets.

Question

Quizplus · Accepted Answer

Accounting standards are developed through a political process involving various stakeholders such as regulators, standard-setting bodies, accounting professionals, and industry representatives, among others. The process involves consultations, debates, and negotiations aimed at arriving at accounting rules that are in the public interest and meet the needs of different users of financial information. The political nature of accounting standard-setting is reflected in the fact that different groups may have conflicting interests and priorities, and thus the standards may be subject to compromises and trade-offs.

Accounting Standards Are