1. According to FASB pronouncements, which of the following is not

considered a characteristic of a public business entity?

 A) It files financial statements with the SEC.

 B) It has issued securities that are traded on an exchange.

 C) It has more than 500 employees.

 D) It is a conduit bond obligor for conduit debt securities.

Answer: C) It has more than 500 employees.

Rationale: The number of employees is not a characteristic used to define

a public business entity according to FASB.

2. When dealing with multinational accounting, which method is not used

for translating foreign currency financial statements?

 A) Current rate method.

 B) Temporal method.

 C) Monetary-nonmonetary method.

 D) All of the above are used.

Answer: D) All of the above are used.

Rationale: All listed methods are acceptable approaches for translating

foreign currency financial statements under various circumstances.

3. In accordance with AICPA pronouncements, which of the following is

not a test for determining materiality?

 A) The quantitative test.

 B) The qualitative test.

 C) The absolute size test.

 D) The nature of the item test.

Answer: C) The absolute size test.

Rationale: There is no specific 'absolute size test' mentioned in AICPA

pronouncements; materiality is determined based on both quantitative and

qualitative factors.

1. Which of the following organizations sets accounting standards for