Which of the Following Statements Regarding Reporting Under GAAP and IFRS

question 106

Multiple Choice

Which of the following statements regarding reporting under GAAP and IFRS is not true:

• A)Both GAAP and IFRS define the initial asset value as historical cost for nearly all assets.
• B)The definition of an asset under GAAP and IFRS involves three basic criteria.
• C)Both GAAP and IFRS define the initial asset value as replacement value.
• D)The definition of a liability under GAAP and IFRS involves three basic criteria.
• E)After acquisition,one of two asset measurement systems is applied.

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Definitions:

Specific Conventions

Customary rules or practices particular to a certain field or context.

Analyze

The process of examining something methodically and in detail, typically for purposes of explanation and interpretation.

Audience

The group of people who gather to watch, listen to, or read something, such as a performance, speech, or written work.

Purpose

The purpose behind something's creation, action, or existence.