CA1.1 (LO 2) (FASB and Standard-Setting) Presented below are four statements which you are to identify as true or false, If false, explain why the statement is false 1. GAAP is the term used to indicate the whole body of FASB authoritative literature. 2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements 3. The primary governmental body that has influence over the FASB is the SEC. 4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. CA1.2 (LO 1. 2. 3) (GAAP and Standard-Setting) Presented below are four statements which you are to identify as true or false. If false, explain why the statement is false 1. The objective of financial statements emphasizes a stewardship approach for reporting financial information 2. The purpose of the objective of financial reporting is to prepare a balance sheet, an income statement, a statement of cash flows, and a statement of owners' or stockholders' equity 3. Because they are generally shorter, FASB interpretations are subject to less due process, compared to FASB standards. 4. The obiective of financial reporting uses an entity rather than a proprietary approach in determining what information to report