B. ACCOUNTING THEORY 1. Accounting is more of social science than natural science. Explain. 2. Accounting regulation environment 1. FASB does not need SEC approval. Explain. 2. SEC does not need FASB. Explain using examples. 3. Based on the ongoing debate on historical cost vs fair market value (FMV) accounting, we saw that most balance sheets present a mix of both historical cost and FMV elements. Why not stick to only one standard? [Hint: state what the ideal case should be and indicate how/why it is not achievable in some situations. Using examples will be helpful as well.] 4. The public participates in the setting of accounting standards. Explain using the terms 'public interest', 'private interest