There Are Only a Few Examples of Accounting Standards That

question 27

True/False

There are only a few examples of accounting standards that emphasize the effects of transactions on the income statement to the exclusion of their impact on the balance sheet.

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Definitions:

IFRS

The International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements and are recognized by many countries.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards and procedures used in the United States by accountants to compile financial statements.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing shareholders' equity.

Greenmail

A strategy where a company buys back its own shares at a premium from a potential acquirer to prevent a takeover attempt.