Which of the Following Statements Is True Regarding International Financial

question 68

Multiple Choice

Which of the following statements is true regarding International Financial Reporting Standards (IFRS) and U.S. GAAP?

• A) IFRS allows both the perpetual and periodic systems, but U.S GAAP permits only the perpetual system.
• B) IFRS requires a single-step income statement, but U.S. GAAP allows either the single-step or the multiple-step income statement.
• C) U.S. GAAP allows operating expenses to be reported by either function or nature, IFRS requires reporting by function.
• D) IFRS requires 2 years of income statements, U.S. GAAP requires 3 years of income statements.

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Definitions:

Phallic

Relating to or resembling the penis, often used in the context of Freudian psychoanalysis to describe a stage of human development.

Genital

Pertaining to the external and internal organs of reproduction in both males and females.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable thoughts or feelings with their opposites.