Which of the Following Statements About the GAAP Rules and IFRS

question 52

Multiple Choice

Which of the following statements about the GAAP rules and IFRS is true?

• A)The last-in, first-out (LIFO)accounting method is allowed by IFRS but banned by GAAP.
• B)All companies listed on EU stock exchanges are required to use GAAP, while those listed on the New York stock exchange are required to use IFRS.
• C)A US company seeking to raise funds in Germany has to prepare a financial reporting according to GAAP rules only.
• D)Adhering to US GAAP rules as well as IFRS creates extra labor and paperwork for multinational firms.
• E)China is the only country where accounting rules follow both GAAP and IFRS.

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