An editor of the Financial Analysts Jourwal reviewed an earlier edition of this book and made this PROBLEM 2-3 Ararlyats Jyfo Neads and Acwating Broadly speaking, accounting numbers are of two types: those that can be measured and those that have to be estimated. Investors who feel that accounting values are more real than market values should remember that, although the estimated numbers in the accounting statements often have a greater impact, singly or together, than the mea- sured numbers, accountants' estimates are rarely based on any serious attempt by accountants at business or economic judgment. The main reason accountants shy away from precise statements of principle for the determination of asset values is that neither they nor anyone else has yet come up with principles that will consistently give values plausible enough that, if accounting state- ments were based on these principles, users would take them seriously Reguired a. Describe what is meant by measurement in accounting. b. According to this editor, what are the kinds of measurements investors want? c. Discuss whether the objectives of accountants and investors regarding accounting measurement are An FASB member expressed the following view: PROBLEM 2-4 Standard Setting a Are we going to set accounting standards in the private sector or not?. Part of the answer depends on how the business community views accounting standards. Are they rules of conduct, designed to restrain unsocial behavior and arbitrate conflicts of eco- nomie interest? Or are they rules of measurement, designed to generalize and commu- nicate as accurately as possible the complex results of economic events?. .. Rules of conduct call for a political process...Rules of measurement, on the other hand, call for a research process of observation and experimentation.... Intellectually, the case is compelling for viewing accounting as a measurement process. . . . But the history of accounting standard setting has been dominated by the other view-that accounting standards are rules of conduct. The FASB was created out of the ashes of predecessors burned up in the fires of the resulting political process. Required a. Discuss your views on the difference between "rules of conduct" and Tules of measurement b. Explain how accounting standard setting is a political process. Ideetify arguments for and against viewing accounting standard setting as political