Question

The primary governmental bosy that has influence over the FASB is the SEC. True or False

Answer 1

The SEC does have influence over the FASB, even though the FASB operates independently, and various statements about federal spending, taxation, and government powers have been reviewed as true or false based on historical data and current government practices.

Step-by-step explanation:

The statement that the primary governmental body that has influence over the Financial Accounting Standards Board (FASB) is the Securities and Exchange Commission (SEC) is true. The FASB is an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States, following generally accepted accounting principles (GAAP). Although FASB operates independently, the SEC has statutory authority to establish financial reporting standards for publicly traded companies and has historically looked to FASB to fulfill this function. As such, the SEC can influence the FASB by providing comments on proposed standards and by exerting informal influence over its operations.

In regard to the true or false exercise, here is the assessment:

1. Federal spending has grown substantially in recent decades: true.
2. By world standards, the U.S. government controls a relatively large share of the U.S. economy: false, it controls a relatively smaller share compared to other developed countries.
3. A majority of the federal government's revenue is collected through personal income taxes: true.
4. Education spending is slightly larger at the federal level than at the state and local level: false, it is usually the other way around.
5. State and local government spending has not risen much in recent decades: false, it has also been increasing.
6. Defense spending is higher now than ever: false, as a percentage of GDP it has generally been higher during times of major conflict like World War II.
7. The share of the economy going to federal taxes has increased substantially over time: false, it has remained relatively stable as a percentage of GDP over the last few decades.
8. Foreign aid is a large portion, although less than half, of federal spending: false, it is actually a very small portion of the federal budget.

Regarding the exercise on the necessary and proper clause:

The statement that the necessary and proper clause has had the effect of limiting the power of the national government is false. This clause, also known as the elastic clause, has been interpreted to provide the national government with the flexibility to fulfill its constitutional powers. The use of this clause has generally resulted in an expansion of national government power.