Would a Company Be More Likely to Report a Contingent

question 38

Multiple Choice

Would a company be more likely to report a contingent liability under U.S.GAAP or IFRS?

• A)U.S.GAAP.
• B)IFRS.
• C)Equally likely.
• D)Contingent liabilities are not reported under IFRS.

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Definitions:

Dollar Value

The worth of a good or service expressed in terms of the amount of money that can be exchanged for it.

Dollar Appreciates

An increase in the value of the US dollar relative to other currencies in the global market.

Yen

The official currency of Japan, known for being one of the most traded currencies in the foreign exchange market.

International Exchange

The trading of goods, services, and currencies among countries, allowing for the movement of resources across borders.