All of the Following Statements Regarding Accounting Treatments for Liabilities

question 185

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:

Scatterplot

A type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data, showing the relationship between them.

Variables

Elements, characteristics, or conditions that can change or vary in a mathematical or statistical experiment.

Outliers

Data points that are significantly different from or inconsistent with the remainder of the dataset.

Scatterplot

A type of graph used in statistics to display values for typically two variables for a set of data, showing how much one variable is affected by another.