Which Statement Is False

question 20

Multiple Choice

Which statement is false?

• A) Under IFRS, if a machine's fair value exceeds the carrying value, the asset can be increased.
• B) Under U.S. GAAP, if a machine's fair value exceeds the carrying value, the asset can be increased.
• C) Under IFRS, if a machine's carrying value exceeds the fair value, the asset can be decreased.
• D) Under U.S. GAAP, if a machine's fair value exceeds the carrying value, the asset should not be adjusted.

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Definitions:

Dependency Theorist

A scholar who advocates for the dependency theory, which suggests that economic conditions in poorer countries are largely the result of exploitative policies and practices by wealthier nations.

Multinational Corporations

Large companies that operate and have subsidiaries in several countries around the world, extending their influence across national borders.

Dependency Theory

A theory suggesting that the economic growth of developing countries is hindered by their dependence on developed countries, leading to unequal international relations.

Cycle of Debt

A repetitive sequence where a borrower incurs new debt to pay off existing debts, often leading to worsening financial conditions.