Which of the Following Statements Is True Concerning How Derecognition

question 159

Multiple Choice

Which of the following statements is true concerning how derecognition of receivables is treated under IFRS and U.S. GAAP?

• A) U.S. GAAP permits partial derecognition; IFRS does not.
• B) The criteria used to derecognize a receivable under IFRS uses a combination of an approach focused on risks and rewards and loss of control.
• C) The criteria used to derecognize a receivable under U.S. GAAP uses risks and rewards as the primary criterion.
• D) All of these answer choices are correct.

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Definitions:

Social Cognitive Theory

A school of psychology in the behaviorist tradition that includes cognitive factors in the explanation and prediction of behavior; formerly termed social learning theory.

Behaviorists

A group of psychologists who focus on observable behaviors rather than mental processes and believe that behaviors are learned from the environment.

Personal Freedom

The power or right of an individual to act, speak, or think as one wants without hindrance or restraint, within the boundaries of the law or societal norms.

Self-Direction

Refers to the ability or quality of an individual to guide, control, and evaluate their own behavior and decisions.