All of the Following Statements Are True Except

question 40

Multiple Choice

All of the following statements are true except

• A)the threshold for recording items as liabilities is lower under IFRS than under U.S.GAAP.
• B)the threshold for recording items as liabilities is lower under U.S.GAAP than under IFRS.
• C)IFRS require a liability to be recorded as a present value amount.
• D)under U.S.GAAP,a contingent item should be recorded as a liability if the loss or outflow is probable and can be reasonably estimated.

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Definitions:

Benefit Corporation

A type of for-profit corporation, available by statute in a number of states, that seeks to have a material positive impact on society and the environment.

Decision-making Process

The series of steps or actions taken to make choices or judgments among alternative courses of action.

Society

A community of people living together in a more or less ordered community, or the aggregate of people living together in a more or less ordered community.

Unlimited Liability

A business obligation where owners are personally responsible for all of a company's debts.