All of the Following Statements Are True Except

question 20

Multiple Choice

All of the following statements are true except:

• A) The criteria to determine whether a lease contract should be considered a capital lease are applied in a more rigid way under U.S.GAAP than IFRS.
• B) The criteria to determine whether a lease contract should be considered a capital lease are applied in a more rigid way under IFRS than U.S.GAAP.
• C) The lease criteria under IFRS are to be used as guidelines rather than rules.
• D) IFRS requires more accounting judgment than U.S.GAAP in the determination of whether a lease is classified as an operating lease or a capital lease.

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Definitions:

Registered Retirement Savings Plan

A retirement savings and investing tool for employees and the self-employed in Canada, offering tax benefits.

Pay-as-you-go Philosophy

A financial strategy where expenses are paid for as they occur, rather than using credit or accumulating debt.

Reward Philosophy

An organization’s formal approach to managing employee compensation, benefits, and recognition in alignment with overall business strategy.

Earnings Philosophy

The underlying beliefs and principles that guide how an organization compensates its employees, reflecting values concerning fairness, performance, and the market.