Question 2 (18 points) Which of the following statements are true? (select all that apply - i.e. just one or as many as all of them) The Financial Accounting Standards Board (FASB) was given the authority to set accounting standards in the US by the Congress. However, the FASB delegated the task of developing such standards to the Securities and Exchange Commision (SEC) The primary function of financial accounting is to provide useful financial information to tax authorities Accrual-basis accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow. The FASB's due process system allows various interested parties to indicate their opinions about whether financial accounting standards should be changed. The periodicity assumption requires that present value calculations take into account the number of compounding periods in each year, US-GAAP allows companies to omit disclosure or relevant information if such disclosure would be too costly for the wealth of the company's managers. Previous Page Next Page Page 2 of 14