In What Way Does the IASB Standard on Leases (IAS

question 50

Multiple Choice

In what way does the IASB standard on Leases (IAS 17) differ from U.S.GAAP?

• A)It is less specific than U.S.GAAP in terms of defining what constitutes a finance lease.
• B)U)S.GAAP requires more professional judgment in accounting for leases than does IAS 17.
• C)IAS 17 is more specific than U.S.GAAP in defining an operating lease.
• D)Operating leases are capitalized under IAS 17 but are not capitalized under U.S.GAAP

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Definitions:

Journal Entries

Records of financial transactions entered into an accounting system, ensuring that the debits equal the credits in financial accounting records.

Cash

Liquid assets held by an individual or company, which include currency and demand deposits readily available for transactions.

Debits Than Credits

Debits than credits refers to a situation where the total debits in an account or transaction exceed the total credits, impacting the balance.

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company's financial position, showing its assets, liabilities, and shareholders' equity at a specific point in time.