Which of the Below Statements Is TRUE

question 43

Multiple Choice

Which of the below statements is TRUE?

• A) Depository institutions do not include commercial banks (or simply banks), savings and loan associations (S&Ls), savings banks, and credit unions.
• B) Since their funds are raised through deposits and other funding sources, depository institutions cannot make direct loans to various entities or invest in securities.
• C) Depository institutions derive their income from two sources: (1) the income generated from the loans they make and the securities they purchase, and (2) fee income.
• D) It is uncommon to refer to S&Ls, savings banks, and credit unions as thrifts, which are specialized types of depository institutions.

Understand the issues and processes involved in converting financial statements from U.S. GAAP to IFRS.

Recognize the authoritative pronouncements of International Financial Reporting Standards (IFRSs).

Comprehend the differences between IFRS and U.S. GAAP and the types of differences that exist.

Understand the influence of a country's legal system on its financial reporting practices.

---

Definitions:

Respondent Conditioning

A form of learning in which a neutral stimulus becomes associated with a reflexive response through conditioning, also known as classical conditioning.

Consequences

Outcomes or effects that result from a given action or condition.

Social Learning

A theory that proposes people can learn new behaviors and information by observing others, also known as observational learning.

Overt Responses

Visible or externally observable actions or reactions to stimuli.