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:

Loan Balance

The amount of money that remains to be paid on a loan.

Student Loans

Money borrowed to pay for education expenses, which must be repaid with interest.

Principal

The initial sum of money borrowed in a loan or put into an investment, exclusive of any interest or dividends.

Student Loans

Loans offered to students to help cover post-secondary education expenses, which typically have favorable interest rates compared to other types of loans.