The Conceptual Framework That Underlies IFRS

question 9

Multiple Choice

The conceptual framework that underlies IFRS

• A) is very similar to that used to develop GAAP.
• B) does not define assets or liabilities.
• C) does not define equity.
• D) does not define income or expenses.

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Definitions:

Cognitive Economy

A principle in cognitive psychology that suggests the brain strives to simplify information processing by using the most efficient and simplest ways to understand and process information.

Spreading Activation

A theory in cognitive psychology that suggests ideas in memory are connected and that the activation of one idea can trigger the activation of related ideas.

Lexical Decision Tasks

A psychological experiment that involves determining whether a string of letters is a word or a non-word.

Procedural Memory System

A type of long-term memory responsible for knowing how to do things, also known as muscle memory, involving the performance of particular types of tasks without conscious awareness.