A) The IASB has created accounting standards that are:

Select one:

a. Rules-based.

b. Comparability-based.

c. Transactions-based.

d. Principles-based.

B) The implication of the random walk is that:

Select one:

a. Earnings can either go up or down due to random factors.

b. Earnings are extremely hard to predict on the basis they are random.

c. The consideration of future earnings should not involve prior year's earnings as they are not useful.

d. Prior year's earnings are useful in considering future earnings.