Which of the Following Statement(s)is/are True with Respect to the Differences

question 11

Multiple Choice

Which of the following statement(s) is/are true with respect to the differences between IFRS and US generally accepted accounting principles (GAAP) ?

• A) There are no differences between IFRS and US GAAP.
• B) There are only slight differences between IFRS and US GAAP.
• C) There was a decision made by both the IASB and the US Financial Accounting Standards Board (FASB) to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards.
• D) There are only slight differences between IFRS and US GAAP and there was a decision made by both the IASB and the US Financial Accounting Standards Board (FASB) to pursue an intensification of the convergence program designed to bring a number of short-term fixes between the two sets of accounting standards.

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Definitions:

Credits

An accounting entry that increases liabilities or equity or decreases assets on a company's balance sheet.

Debits

Debits are accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts, typically noted on the left side of accounting ledgers.

Dividends Account

An account used to record the payment of dividends, which are distributions of a corporation's earnings to its shareholders.

Expense

Costs incurred in the process of earning revenue, typically including cost of goods sold, selling, general, and administrative expenses.