Accounting standards are a product of careful logic or empirical findings and are not influenced by political action.

Question

Quizplus · Accepted Answer

Accounting standards are often influenced by political actions and lobbying efforts from various interest groups. These groups may push for certain accounting treatments that benefit their particular industry or agenda. However, accounting standard-setting bodies such as the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) strive to make decisions based on sound logic and empirical evidence.

Accounting Standards Are a Product of Careful Logic or Empirical