Which of the Following Statements Best Describes the Difference Between

question 16

Multiple Choice

Which of the following statements best describes the difference between U.S.GAAP and IFRS with respect to revenue recognition?

• A) IFRS has a substantial amount of industry specific guidance for revenue recognition.
• B) IFRS revenue recognition is not consistent with U.S.GAAP in principle.
• C) There are subtle differences in the wording of U.S.GAAP as compared with IFRS.
• D) IFRS has four criteria and U.S.GAAP has five conditions for revenue recognition.

---

Definitions:

Net Capital Outflow

The difference between the domestic country's total investment abroad and foreign investments within the country, over a specific period of time.

Net Exports

The value of a country's total exports minus its total imports, representing the net value of goods and services being sold abroad.

Net Capital Outflow

The difference between a country's purchase of foreign assets and the sale of domestic assets to foreigners in a given time period.

Real Exchange Rate

The nominal exchange rate adjusted for differences in price levels between two countries, showing how many units of a foreign product can be purchased with one unit of a domestic product.