Why Is It Difficult to Compare IAS 18, Revenue, to U.S.GAAP

question 34

Multiple Choice

Why is it difficult to compare IAS 18, Revenue, to U.S.GAAP?

• A)The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S.GAAP is straightforward.
• B)Revenue is not defined under U.S.GAAP.
• C)There is no single standard in U.S.GAAP that deals solely with revenue.
• D)Under U.S.GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.

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Definitions:

Red Blood Cells

Cells in the blood that transport oxygen from the lungs to body tissues and carbon dioxide from tissues to the lungs.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Thromboplastin

A protein essential for blood clotting, facilitating the conversion of prothrombin to thrombin.

Clotting Pathway

A series of biochemical events, involving coagulation factors, that stop bleeding by forming a clot.