All of the Following Statements Regarding Recognition of Receivables Under

question 208

Multiple Choice

All of the following statements regarding recognition of receivables under U.S. GAAP and IFRS are true except:

• A) Under U.S. GAAP, provision refers to a liability whose amount or timing is uncertain.
• B) Differences arise mainly from industry-specific guidance under U.S. GAAP.
• C) The realization principle under GAAP implies an arm's length transaction occurs.
• D) Receivables that arise from revenue-generating activities are subject to broadly similar criteria for U.S. GAAP and IFRS.
• E) U.S. GAAP and IFRS have similar asset criteria that apply to recognition of receivables.

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Definitions:

Phobic Disorder

A type of anxiety disorder characterized by an excessive and irrational fear of an object, place, or situation that poses little or no actual danger.

Panic Disorder

A psychiatric disorder characterized by sudden episodes of intense fear or panic, often with physical symptoms like rapid heartbeat.

Generalised Anxiety Disorder

A psychiatric condition marked by continuous and intense concern over different facets of life.

Post-Traumatic Stress Disorder

Post-Traumatic Stress Disorder (PTSD) is a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.