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.

---

Definitions:

Sales Job

A role that involves promoting and selling products or services to customers, often requiring strong communication and persuasion skills.

Entrepreneurs

Individuals who undertake the creation, organization, and ownership of a new business venture, facing considerable risk and uncertainty but potentially gaining significant rewards.

Commercial Lending Institutions

Banks and other financial entities that provide loans to businesses for the purpose of facilitating growth and operational expenses.

Legal Responsibilities

Obligations that are defined by law, which individuals or entities are required to fulfill.