Under Both Private Entity GAAP and IFRS

question 44

Multiple Choice

Under both private entity GAAP and IFRS,

• A)the earnings approach to revenue recognition is followed.
• B)all of these
• C)the percentage of completion methods are allowed.
• D)warranty costs are accrued.

---

Definitions:

Accounting Methods

Accounting methods are the specific rules and procedures used by businesses to record and report their financial transactions.

Persuasively Argued

Effectively presented reasoning or argumentation that convincingly supports a particular position or point of view.

Financial Information

Data regarding the financial status of an entity, including assets, liabilities, revenues, expenses, and equity, among other financial metrics.

Verifiable

The ability to be tested and proven to be true or accurate, often through the provision of evidence or demonstration.