Economic consequences of accounting standard-setting means: a.    standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. b.    standard-setters must ensure that no new costs are incurred when a new standard is issued. c.    the objective of financial reporting should be politically motivated to ensure acceptance by the general public. d.    accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter1: Accounting As A Tool For Managers
Section: Chapter Questions
Problem 2EB: Identify the following as true or false: Financial accounting reports are not released to external...
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   Economic consequences of accounting standard-setting means:

a.    standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard.

b.    standard-setters must ensure that no new costs are incurred when a new standard is issued.

c.    the objective of financial reporting should be politically motivated to ensure acceptance by the general public.

d.    accounting standards can have detrimental impacts on the wealth levels of the providers of financial information.

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