Which of the Following Is a True Statement

question 55

Multiple Choice

Which of the following is a true statement?

• A)GAAP and IFRS treat accounts payable,sales taxes payable and unearned revenues in a similar manner as estimated liabilities
• B)GAAP treats accounts payable,sales taxes payable and unearned revenues as estimated liabilities while IFRS treats them as contingent liabilities.
• C)IFRS treats accounts payable,sales taxes payable and unearned revenues as estimated liabilities while GAAP treats them as contingent liabilities.
• D)GAAP and IFRS treat accounts payable,sales taxes payable and unearned revenues in a similar manner as determinable liabilities
• E)None of the statements above are true statements

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Definitions:

Government

An organization or system that governs and implements decisions in a community, country, or society through the establishment of rules and the management of public services.

Classical Quantity Theory

An economic theory suggesting that the amount of money in circulation directly impacts price levels and inflation rates.

Money

A medium of exchange that facilitates transactions, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Stock of Money

The total quantity of money available in the economy at a particular time, including cash and deposits.