Which of the Following Statements About the GAAP Rules and IFRS

question 52

Multiple Choice

Which of the following statements about the GAAP rules and IFRS is true?

• A)The last-in, first-out (LIFO)accounting method is allowed by IFRS but banned by GAAP.
• B)All companies listed on EU stock exchanges are required to use GAAP, while those listed on the New York stock exchange are required to use IFRS.
• C)A US company seeking to raise funds in Germany has to prepare a financial reporting according to GAAP rules only.
• D)Adhering to US GAAP rules as well as IFRS creates extra labor and paperwork for multinational firms.
• E)China is the only country where accounting rules follow both GAAP and IFRS.

---

Definitions:

Daily Recommendation

Guidelines or advice on the amount or the type of something that should be consumed or done daily for health or wellbeing.

Essential Nutrient

Nutrients required for normal body functioning that cannot be synthesized by the body and must be obtained from a dietary source.

Cells

The smallest living units of structure and function.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of life with critical roles in gene expression, enzyme function, and cellular structure.