What Is the Fundamental Difference Between IFRS and GAAP

question 68

Multiple Choice

What is the fundamental difference between IFRS and GAAP?

• A) GAAP relies more on general principles but ignores the spirit of those principles.
• B) GAAP relies more on specific rules and the spirit of the rules.
• C) GAAP relies more on specific rules but not the spirit of the rules.
• D) GAAP relies more on general principles as well as the spirit of those rules.

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Definitions:

Stockholders

Individuals or entities that own stock in a corporation, giving them ownership interests and rights such as voting on corporate matters.

Total Interest Expense

The sum of all interest payments made by a company over a reporting period, typically for borrowing funds.

Interest Payments

Regular payments made to lenders or bondholders as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Total Discount

The complete reduction from the usual price of goods or services, often applied cumulatively or as a summation of various discount types.