Which of the Following Is a Correct Statement About GAAP

question 111

Multiple Choice

Which of the following is a correct statement about GAAP and IFRS?

• A) IFRS prefers valuing assets at historical cost while GAAP prefers using fair value.
• B) IFRS is more "rules-based" than GAAP.
• C) The FASB and the IASB are working towards convergence of standards.
• D) The SEC will require all companies to use IFRS beginning in 2013.

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Definitions:

Hostage Situation

An event in which individuals are held against their will by an abductor with demands usually pertaining to money, political statements, or safe passage.

Hostage Taker

An individual who seizes and holds people against their will, typically to demand ransom or fulfill other conditions.

Suicidal

Pertaining to having the intention or displaying tendencies towards self-harm that could lead to one's death.

Alarm

A device or signal for warning or alerting to danger, or the state of being suddenly aware of potential or imminent danger.