All of the Following Are Ways in Which IFRS May

question 7

Multiple Choice

All of the following are ways in which IFRS may relate to managerial accounting except:

• A)IFRS governs managerial accounting methods.
• B)Managerial accountants usually do not use LIFO for internal reports,so managerial accounting reports are more likely to agree with IFRS than with U.S.GAAP,if the U.S.GAAP reports use LIFO.
• C)If the current IFRS approach of capitalizing R & D costs as assets prevails in the United States,then we are likely to see development costs capitalized for managerial reports.
• D)The accounting information that managers use in making decisions and evaluating performance need not comply with IFRS.

---

Definitions:

Dividend Cuts

A reduction in the dividend amount announced by a company, usually due to financial difficulties or a need to conserve cash.

Cash Dividends

Payments made by a corporation to its shareholders from its earnings in the form of cash.

Bond Restriction

Conditions or covenants included in a bond agreement that impose certain limitations on the issuer's actions.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations using its current assets.