Question 9 of 12 < > Accounting standard-setters use the following process in establishing accounting standards: Research, exposure draft, discussion paper, standard. Research, discussion paper, exposure draft, standard. Discussion paper, research, exposure draft, standard. O Research, preliminary views, discussion paper, standard. eTextbook and Media GAAP is comprised of: -/8 FASB standards, interpretations, EITF consensuses, and accounting rules issued by FASB predecessor organizations. any accounting guidance included in the FASB Codification. FASB standards, interpretations, and concepts statements. O FASB financial standards. eTextbook and Media The authoritative status of the conceptual framework is as follows. It takes precedence over all other authoritative literature. It is not as authoritative as a standard but takes precedence over any interpretation related to the reporting issue. It has no authoritative status. O It is used when there is no standard or interpretation related to the reporting issues under consideration. eTextbook and Media The objective of financial reporting places most emphasis on: O providing information to individuals who are experts in the field. O reporting to capital providers. reporting on stewardship. O providing specific guidance related to specific needs. eTextbook and Media General-purpose financial statements are prepared primarily for: internal users. auditors. external users. government regulators. eTextbook and Media Economic consequences of accounting standard-setting means: O the objective of financial reporting should be politically motivated to ensure acceptance by the general public. O standard-setters must ensure that no new costs are incurred when a new standard is issued. O accounting standards can have detrimental impacts on the wealth levels of the providers of financial information. standard-setters must give first priority to ensuring that companies do not suffer any adverse effect as a result of a new standard. eTextbook and Media The expectations gap is: O what the users of financial statements want from the government and what is provided. what financial information management provides and what users want. what the governmental agencies want from standard-setting and what the standard-setters provide. O what the public thinks accountants should do and what accountants think they can do. eTextbook and Media