The Basic Accounting Entries for Merchandising Are

question 71

Multiple Choice

The basic accounting entries for merchandising are

• A) the same under GAAP and under IFRS.
• B) required under GAAP but not under IFRS.
• C) required under IFRS but not under GAAP.
• D) required under IFRS with some differences as compared to GAAP.

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Definitions:

Specified Term

A fixed-duration period explicitly stated in a contract or agreement, after which the contract may expire if not renewed.

Incontestability Clause

A provision in a life insurance policy that prevents the insurer from disputing the policy's validity after it has been in force for a certain period, typically two years, except under circumstances such as fraud.

State Laws

Laws that are enacted and enforced by individual U.S. states, as opposed to federal law.

Coverage

Coverage denotes the extent of protection provided under an insurance policy, detailing what losses are covered and to what extent.