Which of the Following Are in Accordance with IFRS

question 288

Multiple Choice

Which of the following are in accordance with IFRS?

• A) Accrual basis accounting
• B) Cash basis accounting
• C) Both accrual basis and cash basis accounting
• D) Neither accrual basis nor cash basis accounting

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Definitions:

Interest Per Month

Interest per month is the amount of interest charged or earned on a loan or investment for a one-month period, typically expressed as a percentage of the principal.

Year-end Balance

The total amount of money in an account or on the financial statements at the conclusion of the fiscal year.

Compounded Monthly

Interest on an investment or loan calculated each month on both the initial principal and the accumulated interest from previous months.

Effective Annual Interest Rate

The effective annual interest rate considers the effects of compounding, providing a true reflection of the annual cost of borrowing over a year.