All of the Following Statements Regarding Accounting Treatments for Liabilities

question 129

Multiple Choice

All of the following statements regarding accounting treatments for liabilities under U.S.GAAP and IFRS are true except:

• A)Accounting for bonds and notes under U.S.GAAP and IFRS is similar.
• B)Both U.S.GAAP and IFRS require companies to distinguish between operating leases and capital leases.
• C)The criteria for identifying a lease as a capital lease are more general under IFRS.
• D)Both U.S.GAAP and IFRS require companies to record costs of retirement benefits as employees work and earn them.
• E)Use of the fair value option to account for bonds and notes is not acceptable under U.S.GAAP or IFRS.

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Definitions:

Attachment

A deep and enduring emotional bond that connects one person to another across time and space.

Displacement Behavior

A psychological phenomenon where an individual redirects their impulse from an unattainable or threatening target to a safer or more acceptable one.

Equally Strong Motives

The psychological concept referring to instances where an individual is simultaneously driven by two or more motives that are of similar strength but potentially conflict with each other.

Inhibiting

The action or process of hindering or restraining the function or activity of something.