Which of the Following Statements About IFRS Is True

question 21

Multiple Choice

Which of the following statements about IFRS is true?

• A)IFRS is more rule-based than pre-IFRS GAAP.
• B)IFRS reduces the number of management estimates that can be used.
• C)IFRS requires more judgement in selecting appropriate accounting policies than under pre-IFRS GAAP.
• D)IFRS does not require as strong an accounting infrastructure as under pre-IFRS GAAP.

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Definitions:

Units

Basic quantities or measures adopted to quantify and measure goods, services, or any other items.

Production Function

A mathematical representation that explains how inputs in production are related to the goods or services produced.

Proportions

Ratios or fractions that express the relationship of one part to another or to the whole with respect to quantity, size, or amount.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.