All of the Following Statements Related to U

question 108

Multiple Choice

All of the following statements related to U.S.GAAP and IFRS are true except:

• A)Accounting for basic inventory transactions is the same under the two systems.
• B)The closing process for merchandisers is the same under both systems.
• C)U.S.GAAP offers little guidance about the presentation order of expenses.
• D)Neither system requires separate disclosure of items when their size,nature,or frequency are important.
• E)Neither system defines operating income.

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Definitions:

Per Se

A Latin term often used in law to indicate something that is intrinsically or inherently the case, without needing further proof or qualification.

Foreseeable Misuse

A legal concept referring to the predictable and incorrect use of a product that manufacturers should anticipate and guard against.

Obvious Risks

Hazards or dangers that are clear and apparent, which a reasonable person would recognize.

Unforeseeable Consequences

Outcomes that could not reasonably be predicted or expected to result from specific actions or events.