Under IFRS

question 111

Multiple Choice

Under IFRS

• A) all financial instruments are recorded at fair value.
• B) it is always acceptable to use the direct write-off method.
• C) receivables should only be tested for impairment as a group.
• D) the entry to record estimated uncollected accounts is the same as GAAP.

---

Definitions:

Manufacturing Overhead

Covers all indirect costs associated with manufacturing a product, including expenses such as rent for the manufacturing space, utilities, and salaries for employees not directly producing goods.

T-Accounts

A visual representation of accounts used in double-entry bookkeeping, showing debits on the left and credits on the right.

Direct Materials Cost

The expense incurred for raw materials that are directly incorporated into a finished product.

T-Accounts

A simplified form of accounting ledger that uses a two-column format to show the increases and decreases in different financial accounts.