Which of the Following Is a Major Difference Between the IASB's

question 54

Multiple Choice

Which of the following is a major difference between the IASB's conceptual framework and the FASB's?

• A) The IASB prefers replacement cost over historical cost as a measurement basis.
• B) FASB limits primary user groups to investors and creditors.
• C) FASB's conceptual framework is considerably shorter than the IASB's.
• D) The IASB's framework is in the form of a series of Concept Statements rather than a single framework.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source for generating financial statements.

Entire Group

This term signifies the collective entirety of a set of items, individuals, or entities being considered as a whole.

Account

A record summarizing all transactions related to a particular item or person in financial accounting.

Owner's Equity

The residual interest or ownership claim in a firm's assets after subtracting liabilities, representing what the owners have invested or retained from net income.