All of the Following Statements Related to Current Liabilities for U.S.GAAP

question 42

Multiple Choice

All of the following statements related to current liabilities for U.S.GAAP and IFRS are true except:

• A)The definitions and characteristics of current liabilities are broadly similar for both U.S.GAAP and IFRS.
• B)Provision is typically used under IRFS to refer to liability under U.S.GAAP.
• C)Because tax regulatory systems of countries are different, the approach to recording taxes is totally different.
• D)When there is little uncertainty surrounding current liabilities, both require companies to record them in a similar manner.
• E)When there is a known current obligation that involves an uncertain amount, but one that can be reasonable estimated, both require similar treatment.

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Definitions:

Opportunity

In business, an opportunity refers to a favorable situation or circumstance that can be leveraged for potential growth or profit.

Internal Users

Individuals within an organization who use accounting information for decision-making purposes, such as managers and employees.

Limited Access

A restriction or control on the entry to or use of resources, facilities, or information.

Balance Sheet

A summary of a corporation's financial status, including assets, liabilities, and shareholders' equity, at a specific time.