Which of the Following Is a True Statement Regarding Treatment

question 104

Multiple Choice

Which of the following is a true statement regarding treatment of leases under GAAP and IFRS?

• A) Under IFRS, capital leases are referred to as finance leases.
• B) Both GAAP and IFRS use bright-line tests as criteria for classifying leases.
• C) Both GAAP and IFRS use qualitative tests to classify leases.
• D) Both GAAP and IFRS require a specific number of criteria to be satisfied in order to classify a lease as a capital lease.

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Definitions:

Deliberate Deception

The intentional act of misleading or tricking someone by providing false information or withholding the truth.

Social Desirability Bias

The tendency of survey respondents to answer questions in a manner that will be viewed favorably by others, often leading to overreporting of positive behaviors and underreporting of negative behaviors.

Response Sets

Response sets refer to a pattern of responding to questions in a particular way irrespective of the content, often leading to biased outcomes in surveys or psychological tests.

Deliberate Deception

Intentionally misleading or lying to others, often to gain a personal advantage or to manipulate a situation.