What Is the Fundamental Difference Between IFRS and GAAP

question 68

Multiple Choice

What is the fundamental difference between IFRS and GAAP?

• A) GAAP relies more on general principles but ignores the spirit of those principles.
• B) GAAP relies more on specific rules and the spirit of the rules.
• C) GAAP relies more on specific rules but not the spirit of the rules.
• D) GAAP relies more on general principles as well as the spirit of those rules.

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Definitions:

Monthly Payments

Payments that are due every month, as in the case of a loan or lease.

Withdrawals

Acts of removing funds from a savings or investment account, which can impact the account's growth or income-producing ability.

Compounded Quarterly

The calculation of interest on the principal amount and any accumulated interest every three months.

Quarterly Withdrawals

The act of taking money out of an account or investment four times a year.