Which Receivables Accounting and Reporting Issue Is Essentially the Same

question 48

Multiple Choice

Which receivables accounting and reporting issue is essentially the same for IFRS and GAAP?

• A)The use of allowance accounts and the allowance method.
• B)How to record discounts.
• C)How to record factoring.
• D)All of these are essentially the same for IFRS and GAAP.

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Definitions:

Effective Annual Rate

The real return on an investment, taking into account the effect of compounding interest as opposed to just the nominal rate.

Annuity Due

An annuity in which the payments are made at the beginning of each period; contrast with ordinary annuity, where payments are made at the end of the period.

Ordinary Annuity

Uniform payments issued at sequential period endings, over a pre-defined timespan.

Savings Account

A deposit account held at a bank or financial institution that offers interest earnings and the safety of the deposited funds.