All of the Following Statements Regarding Accounting Treatments for Liabilities

question 129

Multiple Choice

All of the following statements regarding accounting treatments for liabilities under U.S.GAAP and IFRS are true except:

• A)Accounting for bonds and notes under U.S.GAAP and IFRS is similar.
• B)Both U.S.GAAP and IFRS require companies to distinguish between operating leases and capital leases.
• C)The criteria for identifying a lease as a capital lease are more general under IFRS.
• D)Both U.S.GAAP and IFRS require companies to record costs of retirement benefits as employees work and earn them.
• E)Use of the fair value option to account for bonds and notes is not acceptable under U.S.GAAP or IFRS.

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Definitions:

Personality

A mix of properties or features that define a person's individual nature.

Walter Mischel

A psychologist known for his work on personality theory and cognitive-affective models, including the concept of self-control as demonstrated in the Marshmallow Test.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Situationism

A theory in psychology that suggests human behavior is largely determined by situational factors, rather than internal traits.