Which of the Following Statements Best Describes How GAAP and IFRS

question 12

Multiple Choice

Which of the following statements best describes how GAAP and IFRS treat cash?

• A)Accounting definitions for cash are similar for U.S.GAAP and IFRS.
• B)IFRS is more strict about what is considered cash than GAAP.
• C)GAAP is more strict about what is considered cash than IFRS.
• D)IFRS requires a cash balance of at least 10% of total assets; GAAP requires a cash balance of at least 5% of total assets.
• E)GAAP requires anything other than coins and bills in hand to be classified as cash equivalents while IFRS classifies coins and bills as cash equivalents.

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Definitions:

Affective Commitment

An employee’s emotional attachment to the organization that makes the employee want to stay in the organization

Continuance Commitment

The ongoing sense of attachment an individual feels towards an organization because leaving would be costly.

Excellent Pay

Compensation or salary that is significantly higher than average, often reflecting a high level of skill, experience, or responsibility.

Job Market

The marketplace in which employers find workers and workers find jobs. It includes a variety of industries, roles, and employment types, and is influenced by economic conditions.