Why Is It Difficult to Compare IFRS15/ASC606, Revenue, to U

question 10

Multiple Choice

Why is it difficult to compare IFRS15/ASC606, Revenue, to U.S. GAAP?

• A) The IASB definition of revenue is very complicated, whereas the definition of revenue under U.S. GAAP is straightforward.
• B) Revenue is not defined under U.S. GAAP.
• C) There is no single standard in U.S. GAAP that deals solely with revenue.
• D) Under U.S. GAAP, revenue is defined in terms of cash, whereas IAS 18 defines revenue in terms of a variety of resources.

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Definitions:

Texting

The act of sending and receiving written messages through electronic devices, primarily mobile phones.

Adverse Selection

A situation in markets where buyers or sellers have information that the other party does not, leading to suboptimal market outcomes.

Mortgage Lender

A financial institution or individual that provides funds to borrowers for the purpose of purchasing real estate, which is secured by the property being bought.

Default

Failure to fulfill a financial obligation, such as not making scheduled loan payments, leading to potential legal consequences or credit score impact.