Which of the Following Statements Is incorrect Concerning Balance Sheets

question 107

Multiple Choice

Which of the following statements is incorrect concerning balance sheets prepared under IFRS and GAAP?

• A)The same elements are used in preparing balance sheets under both GAAP and IFRS.
• B)Under IFRS stockholders' equity is listed before liabilities,while under GAAP liabilities are listed before stockholders' equity.
• C)Under GAAP assets are usually listed in increasing order of liquidity,while under IFRS assets are usually listed in decreasing order of liquidity.
• D)Under GAAP current items are presented first,while under IFRS noncurrent items are presented first.

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Definitions:

Contrapositive

A logical statement derived by negating and swapping the hypothesis and conclusion of the original conditional statement. If the original statement is "If P, then Q," the contrapositive is "If not Q, then not P."

Hypothetical Proposition

A proposition or statement that is based on a hypothesis or an assumption rather than on known facts.

Antecedent

The “if” component in a hypothetical proposition.

Hypothetical Proposition

An assumption or proposition made for the sake of argument that explores consequences of its being true, regardless of its actual truth value.