IFRS and US GAAP Differ with Regard to Financial Statement

question 36

Multiple Choice

IFRS and US GAAP differ with regard to financial statement presentation in all of the following except:

• A)IFRS generally requires that assets be listed in order of increasing liquidity while US GAAP requires that assets be listed in order of decreasing liquidity.
• B)US GAAP requires expenses to be listed by function while IFRS requires expenses to be listed by nature.
• C)IFRS prohibits extraordinary items which are allowed by US GAAP.
• D)IFRS requires two years of comparative income statements while under US GAAP, three years of income statements are required.

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Definitions:

Water Intoxication

A potentially fatal disturbance in brain functions that results when the normal balance of electrolytes in the body is pushed outside of safe limits by excessive water intake.

Hypernatremia

A condition characterized by an abnormally high level of sodium in the blood, potentially indicating dehydration or other medical conditions affecting the body’s water balance.

Distorted Visual Experiences

Perceptual anomalies where an individual sees objects, shapes, or sizes in a warped manner compared to objective reality, potentially indicative of neurological or psychiatric conditions.

Synergistic Effect

An interaction between substances or actions where the combined effect is greater than the sum of their separate effects.