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:

Differential Reinforcement

A behavioral principle that involves reinforcing specific behaviors while withholding reinforcement for others, to encourage the desired behavior.

Deviant Act

Any behavior that violates the norms or expectations of a group or society, which can result in social disapproval or sanction.

Reintegrative Shaming

A concept in criminology that suggests shame can be used as a form of punishment that encourages offenders to reintegrate into society, differentiating between the act and the actor.

Stigmatizing

The act of discrediting or devaluing individuals on the basis of attributes, behaviors, or reputations that are socially disapproved or seen as undesirable.