All of the Following Statements Regarding Recognition of Receivables Under

question 53

Multiple Choice

All of the following statements regarding recognition of receivables under U.S.GAAP and IFRS are true except:

• A)U.S.GAAP and IFRS have similar asset criteria that apply to recognition of receivables.
• B)Receivables that arise from revenue-generating activities are subject to broadly similar criteria for U.S.GAAP and IFRS.
• C)The realization principle under GAAP implies an arm's length transaction occurs.
• D)GAAP refers to the earnings process and IFRS refers to risk transfer and ownership reward.
• E)Differences arise mainly from industry-specific guidance under U.S.GAAP.

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Definitions:

Credible Messages

Information presented in a manner that is believable and trustworthy to the audience.

Organization's Purpose

The fundamental reason for an organization's existence, often reflected in its mission, vision, and goals.

Public Relations Practitioner

A professional responsible for managing and influencing public perception and maintaining relationships between an organization and its publics.

Goodwill

The intangible asset that arises as a result of the acquisition of one company by another for a premium value, representing the reputation, brand, and other non-tangible assets.