Which of the Following Statements Is True About Common-Law Countries

question 8

Multiple Choice

Which of the following statements is true about common-law countries?

• A)Common-law countries must completely adopt IFRS.
• B)Amendments to IFRS by common-law countries must be done legislatively.
• C)Amendments to IFRS by common-law countries must be done by government regulation.
• D)In common-law countries, the local non-government standard setting authority can decide which international standards to adopt.

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Definitions:

Laffer Curve

A theory that illustrates the relationship between tax rates and the amount of tax revenue collected by governments.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is unattainable.

Tax Per Unit

A tax that is levied on a per unit basis, meaning for every unit of a good produced or sold, a certain amount of tax is paid.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service does not reach, or cannot reach, its equilibrium state.