Which of the Following Is in Accordance with IFRS

question 61

Multiple Choice

Which of the following is in accordance with IFRS?

• A) Accrual basis accounting
• B) Cash basis accounting
• C) Both accrual basis and cash basis accounting
• D) Neither accrual basis nor cash basis accounting

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Definitions:

Long Run Adjustment

The process through which firms adjust their levels of production, capital, and other inputs to reach a new equilibrium in response to changes in market conditions over time.

Organic

Refers to products, especially food or farming methods, that are produced or conducted without the use of synthetic chemicals, fertilizers, or genetically modified organisms.

Profit

The financial gain realized when the amount of revenue gained exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

Long Run Equilibrium

A state in an economy in which all factors of production and inputs can be varied, allowing firms to make adjustments and leading to the normalization of prices and output.