Which of the Following Statements Best Describes How GAAP and IFRS

question 176

Multiple Choice

Which of the following statements best describes how GAAP and IFRS treat cash?

• A) Accounting definitions for cash are similar for U.S. GAAP and IFRS.
• B) IFRS are more strict about what is considered cash than GAAP .
• C) GAAP is more strict about what is considered cash than IFRS.
• D) IFRS requires a cash balance of at least 10% of total assets; IFRS requires a cash balance of at least 5% of total assets.
• E) GAAP requires anything other than coins and bills in hand to be classified as cash equivalents while IFRS classifies coins and bills as cash equivalents.

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Definitions:

Equity Model

A theory that focuses on determining whether the distribution of resources within interpersonal relationships is fair to both parties involved.

Inputs

Resources, information, or efforts that are put into a system or process to achieve outputs or outcomes.

Individual

Refers to a single, separate organism or entity, especially when considering human beings as distinct units with unique characteristics.

Equity Theory

A psychological theory suggesting that employees are motivated by fairness, and that perceived inequities can lead to dissatisfaction and changes in behavior.