All of the Following Statements Related to U

question 162

Multiple Choice

All of the following statements related to U.S. GAAP and IFRS are true except:

• A)Accounting for basic inventory transactions is identical under both systems.
• B)The closing process for merchandisers is the same under both systems.
• C)U.S.GAAP offers little guidance about the presentation order of expenses.
• D)Neither system requires separate disclosure of items when their size, nature, or frequency are important.
• E)Neither system defines operating income.

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Definitions:

Federal Government

The national government of a federal country, which holds the authoritative powers conferred to it by a constitution.

Deficit

A deficit occurs when an entity's expenditures exceed its revenues over a specified period, often referring to government budgets.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often resulting in downward pressure on the price.

Thomas Robert Malthus

An English economist and demographer best known for his theory that population growth will outpace agricultural production, leading to widespread poverty and famine.