Which of the Following Statements Is True Regarding Accounting for Receivables

question 131

Multiple Choice

Which of the following statements is true regarding accounting for receivables under IFRS and U.S. GAAP?

• A) U.S. GAAP has four specifically defined categories for financial assets, which include loans and receivables.
• B) U.S. GAAP accounts for short-term receivables at amortized cost, adjusted for allowances for doubtful accounts, whereas IFRS requires fair value for receivables.
• C) In their current deliberations regarding accounting for financial instruments, it appears that IASB wants amortized costs for receivables, but GAAP is tending toward fair value.
• D) All of these answer choices are correct.

---

Definitions:

Receptors

Specialized cells or proteins in the body that bind to specific molecules, triggering a response.

Genetic Causes

Refers to health conditions or physical traits that are influenced or determined by an individual's genes.

Color Deficiencies

Impaired ability to see colors and differentiate between certain shades, commonly known as color blindness.

Red-Green Color Blindness

A common form of color blindness where individuals have difficulty distinguishing between red and green hues.