Believing It Will Make It Easier for Investors to Compare

question 57

True/False

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.

---

Definitions:

Accounting Equation

The foundational equation in accounting, articulated as Assets = Liabilities + Owner's Equity, representing the relationship between a company's resources and claims on those resources.

Profit

The financial gain calculated as the difference between revenue generated and expenses incurred by a business.

Assets and Liabilities

These represent a company's resources (assets) and obligations (liabilities).

Incoming Cash

Money received by an organization, representing inflows from various sources like sales, investments, or loans.