IFRS Compared to GAAP Tends to Be More

question 20

Multiple Choice

IFRS compared to GAAP tends to be more

• A) detailed.
• B) rules-based.
• C) principles-based.
• D) full of disclosure requirements.

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operating cycle.

Quick Ratio

A liquidity metric that indicates a company's ability to cover its current liabilities without selling inventory, calculated as (cash plus marketable securities plus accounts receivable) divided by current liabilities.

Temporary Investments

Short-term investments that a company plans to convert into cash within a short period, typically one year or less.

Remote Contingent Liability

A potential financial obligation that is considered to be unlikely to occur; it is noted in financial statements as a footnote to provide full disclosure.