Which of the Following Statement Is True Regarding the Recording

question 80

Multiple Choice

Which of the following statement is true regarding the recording process?

• A) Because IFRS rely more on fair value and less on historical cost than U.S. GAAP the double-entry accounting system is not widely used by companies who use IFRS.
• B) Both IFRS and U.S. GAAP, use the same general rules of debits and credits and the steps in the recording process.
• C) A trial balance using IFRS is organised by first showing the accounts from the statement of financial position followed by accounts from the income statement; a trial balance using U.S. GAAP is organized using the opposite order.
• D) All of the choices are correct regarding the recording process.

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Definitions:

Consumer Equilibrium

A scenario in which a consumer has distributed their income to achieve the greatest satisfaction, considering the prices of goods and services.

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford to purchase at given prices within their income level.

Utility

In economics, utility refers to the total satisfaction received from consuming a good or service.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning the consumer has no preference for one bundle over another.