Which of the Following Represents the Difference Between UK GAAP

question 20

Multiple Choice

Which of the following represents the difference between UK GAAP and IFRS with respect to proposed dividends?

• A)Under UK GAAP, proposed dividends should not be recognized as a liability at the balance sheet date, whereas IFRS mandates proposed dividends to be accrued as a liability.
• B)UK GAAP has provided no guidance on this issue, whereas IFRS prohibits the recognition of proposed dividends as accrued liability.
• C)Under UK GAAP, proposed dividends should be accrued as a liability, whereas under IFRS, it should not be recognized as a liability at the balance sheet date.
• D)IFRS has no specific guidance regarding the treatment of proposed dividends, whereas UK GAAP mandates proposed dividends to be recognized as accrued liability.

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Definitions:

Expert Systems

Artificial intelligence systems that use knowledge-based databases to simulate the expertise and decision-making ability of human experts.

Preprogrammed Algorithms

Algorithms that are specified or coded into software or a device in advance to perform specific tasks or solve certain problems.

Rules-Based Systems

Software that asks questions and responds based on preprogrammed algorithms. Early attempts at expert systems were rules based.

Personal Ethics

An individual's moral principles and values that govern their behaviors and decision-making processes.