The Standards for Private Entity GAAP and IFRS Include Numerous

question 18

Multiple Choice

The standards for private entity GAAP and IFRS include numerous differences.Which of the following statements best describes the requirements for the preparation and presentation of the cash flow statement?

• A)Both standards allow the use of the indirect or direct method
• B)Private entity GAAP permits the use of the direct method only
• C)IFRS permits the use of the single-step method only
• D)(b) and (c)

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Definitions:

Punishment

A process in behavior analysis and modification, involving the application of an unpleasant stimulus or removal of a desirable stimulus to decrease a behavior.

Negative Reinforcement

A process in which a behavior increases because it removes or diminishes a negative condition.

Continuous Reinforcement

Continuous reinforcement is a learning process in which a desired behavior is reinforced every time it occurs, leading to rapid learning.

Partial Reinforcement

A conditioning strategy where rewards or punishments are given only some of the time a desired behavior occurs, leading to more resilient behavioral patterns.