Which of the following statements is true of the FASB?
A) Its authority comes from the Internal Revenue Service.
B) It consists of seven members appointed by the Financial Accounting Foundation.
C) Its members cannot be reappointed to serve additional terms.
D) Its members can retain ties with firms in which they were previously employed.

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) consists of seven members who are appointed by the Financial Accounting Foundation, and their authority comes from the Securities and Exchange Commission (SEC). Members can be reappointed to serve additional terms, and they are required to sever all ties with firms in which they were previously employed to ensure independence and objectivity in their decision-making.

Which of the Following Statements Is True of the FASB