-1. Financial A. l t0 te tollowing questions and place the letter of that answer in the space provided. ting standard-setting in the United States accoun can be described as a as well social process which reflects political actions of various interested user groups as a product of research and logic. B. is based solely on research and empirical findings. C.is a legalisti D. is democratic c process based on rules promulgated by governmental agencies. bemecrmi in he sense that a majority of accountants must vote to approve a standard before it 2. For accounting purposes a transaction is: A. Any business event involving exchange of money Any business event which changes one of the accounting elements. C. Any D. The hiring or firing of an employee. E. All of the above are accounting transactions. ycontractual relationship entered into by a business 3. The Financial Accounting Foundation A. oversees the operations of the FASB. B. oversees the operations of the AICPA C. oversees the accounting operations of the SEC. D. regulates and reviews audit processes performed by CPAs. E. was created by the Sarbanes-Oxley Act 4. The overriding criterion by which accounting information can be judged is that of A. usefulness for decision making B. freedom from bias. C. timeliness. D. Relevance. E. consistency . The Financial Accounting Standards Board employs a "due process" system which A. is an efficient system for collecting dues from members B. enables interested parties to express their views on issues under consideration. C. identifies the accounting issues that are the most important D. evaluates the societal impact of proposed accounting standards