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:

Negative Views

Pessimistic or unfavorable opinions or beliefs about something or someone.

Effort Justification

A psychological phenomenon where individuals rationalize the effort they put into a task by increasing their valuation of the outcome.

Minimal Deterrence

A strategy in international relations aimed at preventing undesirable actions by other states, using the least force or threat possible.

Overjustification

The phenomenon where providing an extrinsic reward for behavior that was previously intrinsically rewarding can lead to a reduction in intrinsic motivation.