Which Receivables Accounting and Reporting Issue Is Essentially the Same

question 18

Multiple Choice

Which receivables accounting and reporting issue is essentially the same for IFRS and GAAP?

• A)The use of allowance accounts and the allowance method.
• B)Recording of discounts
• C)Recording sales returns and allowances
• D)All of these are essentially the same for IFRS and GAAP.

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Definitions:

Consumer Goods

Products and services that satisfy the needs and wants of consumers through their direct consumption or use.

William Levitt

An American real-estate developer known for popularizing the modern suburb with the development of the Levittown communities in the mid-20th century.

GI Bill

A law passed in 1944 that provided a range of benefits for returning World War II veterans (commonly referred to as GIs).

Homeowners

Individuals who own their homes, possessing both the dwelling and the land on which it stands.