What Is the Difference Between GAAP and IFRS Presentations of the Current

question 10

Multiple Choice

What is the difference between GAAP and IFRS presentations of the current assets section on the balance sheet?

• A)Under IFRS it is mandatory to present current assets first while under GAAP it is customary (but not required) to present noncurrent assets first.
• B)Both IFRS and GAAP require that current assets are listed first.
• C)Under GAAP it is mandatory to present current assets first,while under IFRS it is customary (but not required) to present noncurrent assets first.
• D)It is customary (but not required) under both IFRS and GAAP to present noncurrent assets first.
• E)GAAP requires that current assets be presented first,while IFRS requires that current assets be presented last.

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Definitions:

Production Planning

The process of determining the production schedule, indicating how, when, and by whom specific products will be produced.

Production Budget

An estimate of the total cost of production that includes direct labor, materials, and overhead expenses for a specific period.

Labour Requirements

The amount and type of labor necessary to produce a certain quantity of goods or to provide services.

Zero-Base Budgeting

A budgeting approach where every expense must be justified for each new period, starting from a "zero base," with no reference to prior years' budget.