Which of the Following Is a True Statement Regarding the Treatment

question 77

Multiple Choice

Which of the following is a true statement regarding the treatment of accounts payable,sales tax payable,and unearned revenues?

• A)Both GAAP and IFRS treat these accounts as estimated liabilities.
• B)GAAP treats them as estimated liabilities,while IFRS treats these accounts as contingent liabilities.
• C)IFRS treats them as estimated liabilities,while GAAP treats theses accounts as contingent liabilities.
• D)Both GAAP and IFRS treat these accounts as known liabilities.
• E)IFRS treats them as known liabilities,while GAAP treats these accounts as contingent liabilities.

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Definitions:

Opportunity Cost

The value of the alternative sacrificed when choosing one option over another.

Oranges

A citrus fruit that is a rich source of Vitamin C and is grown in warm climates worldwide, often consumed raw or as juice.

Peaches

A type of fruit with a fuzzy skin, sweet yellow or white flesh, and a stone or pit in the center.

Opportunity Cost

The evasion of possible rewards from diverse options by committing to one alternative.