All of the Following Statements Regarding Accounting Treatments for Liabilities

question 129

Multiple Choice

All of the following statements regarding accounting treatments for liabilities under U.S.GAAP and IFRS are true except:

• A)Accounting for bonds and notes under U.S.GAAP and IFRS is similar.
• B)Both U.S.GAAP and IFRS require companies to distinguish between operating leases and capital leases.
• C)The criteria for identifying a lease as a capital lease are more general under IFRS.
• D)Both U.S.GAAP and IFRS require companies to record costs of retirement benefits as employees work and earn them.
• E)Use of the fair value option to account for bonds and notes is not acceptable under U.S.GAAP or IFRS.

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Definitions:

Marketing Mix Elements

Components of a marketing strategy, traditionally identified as product, price, place, and promotion, used to meet consumers' needs and business goals.

Strategic Combination

A tactic of integrating diverse strategies, resources, or actions to reach more comprehensive and effective strategic goals.

Yield Management

A pricing strategy used by companies to increase revenue by considering both the price and the inventory available to meet demand.

Service Capacity

The maximum amount of service that can be provided by a business or service provider in a given period.