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:

Positivism

A philosophical theory that asserts that genuine knowledge is based on natural phenomena and their properties and relations as verified by empirical sciences.

Rationalism

A philosophy that emphasizes reason and knowledge acquisition through deductive reasoning and logical analysis, rather than empirical evidence.

Factual Analysis

Examination of data to discover verifiable facts and establish their validity.

Hypothesis

A testable prediction or statement about the relationship between two or more variables that can be tested through research.