Which of the Following Statement(s)is/are True with Respect to the Differences

question 37

Multiple Choice

Which of the following statement(s) is/are true with respect to the differences between IFRS and US generally accepted accounting standards?

• A) There are no differences between IFRS and US generally accepted accounting standards.
• B) There are only slight differences between IFRS and US generally accepted accounting standards.
• C) There was a decision made by both the IASB and the US Financial Accounting Standards Board (FASB) to pursue a high Difficulty of convergence program designed to bring a number of short-term fixes between the two sets of accounting standards.
• D) There are only slight differences between IFRS and US generally accepted accounting standards; and there was a decision made by both the IASB and the US Financial Accounting Standards Board (FASB) to pursue a high Difficulty of convergence program designed to bring a number of short-term fixes between the two sets of accounting standards.
• E) None of the given answers.

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Definitions:

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.

Capital Gains

The profit from the sale of an asset or investment when the selling price exceeds the purchase price.

Non-Eligible Dividends

Dividends that are paid out by a company from earnings that are not subject to the preferential tax treatment as eligible dividends in some jurisdictions.

Average Tax Rate

The proportion of total taxable income that an individual or entity pays in taxes, calculated by dividing the total tax paid by the total taxable income.