Final answer:
All choices are correct—FASB aims to improve financial reporting, foster international convergence, and simplify accounting literature in its rule-making activities.
Step-by-step explanation:
The fundamental considerations the Financial Accounting Standards Board (FASB) must keep in mind during its rule-making activities include the improvement in financial reporting, the promotion of international convergence of accounting standards, and the simplification of the accounting literature. Therefore, the correct answer to the student's question is D. All of these choices are correct.
FASB's rule-making process is aimed at enhancing the quality and consistency of financial reporting, which is vital for investors, creditors, and others who rely on financial statements. Furthermore, FASB considers the benefits of aligning U.S. accounting standards with those used internationally, thereby aiding in the comparability of financial information across borders. Lastly, FASB endeavors to simplify the accounting literature, making it more accessible and understandable to its users, reducing complexity for preparers of financial statements.