USGAAP and IFRS Require Firms in Some Instances to Change

question 62

True/False

U.S.GAAP and IFRS require firms in some instances to change the carrying value of certain assets and liabilities.Both sets of accounting standards preclude the recognition of these changes in net income, and therefore in retained earnings.

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Definitions:

Domestic Producers

Manufacturers or providers of goods and services within a country's own borders, as opposed to foreign producers.

Equilibrium World Price

The price at which the quantity of a good demanded globally equals the quantity supplied across the world, without any trade barriers.

Domestic Quantity Supplied

the total amount of a good or service that producers in a domestic market are willing and able to supply at a given price level.

Domestic Quantity Demanded

The total amount of a product or service that consumers in a specific country are willing to buy at a given price.