Which of the Following Is False

question 319

Multiple Choice

Which of the following is false?

• A) Under IFRS, a company records a revaluation surplus when it experiences an increase in the price of its ordinary shares.
• B) Under GAAP, the income statement is presented in a one-or two-statement format.
• C) Under IFRS, companies cannot record gains on transactions involving their own shares.
• D) Under GAAP, companies cannot record gains on transactions involving their own shares.

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Definitions:

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows over a period of time.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of income and expenses.

Required Rate of Return

The minimum expected return by investors for investing in a non-risk-free asset, considering its risk level.

PI

A mathematical constant representing the ratio of a circle's circumference to its diameter, approximately equal to 3.14159.