Although IFRS Contain the Same Basic Guidelines for Accounting for Cash

question 12

Multiple Choice

Although IFRS contain the same basic guidelines for accounting for cash and receivables as U.S.GAAP, some differences exist.Which of the following accounting treatments differs under IFRS versus GAAP?

• A)the accounting for cash (sales)discounts
• B)the classification of some receivables as "available for sale"
• C)the accounting for pledging and assignment of receivables
• D)the application of the allowance method of accounting for uncollectible accounts

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Definitions:

Standard Error

A measure of the statistical accuracy of an estimate, calculated as the standard deviation of the sampling distribution of a statistic.

Probability Distribution

A function that describes the likelihood of different outcomes in an experiment.

Sample Mean

The average value of all the measurements in a sample, calculated by adding all the values and dividing by the number of observations.

Probability Density Function

A function used to compute probabilities for a continuous random variable. The area under the graph of a probability density function over an interval represents probability.