All of the Following Statements Regarding Recognition of Receivables Under

question 143

Multiple Choice

All of the following statements regarding recognition of receivables under U.S. GAAP and IFRS are True except:

• A) U.S. GAAP and IFRS have similar asset criteria that apply to recognition of receivables.
• B) Receivables that arise from revenue-generating activities are subject to broadly similar criteria for U.S. GAAP and IFRS.
• C) The realization principle under IFRS implies an arm's length transaction occurs.
• D) Both refer to the realization principle and an earnings process.
• E) Differences arise mainly from industry-specific guidance under U.S. GAAP.

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Definitions:

Pain-Induced Aggression

Aggressive behavior elicited as a direct response to experiencing physical pain.

Obsessive-Compulsive Disorder

A mental health condition characterized by unwanted and intrusive thoughts (obsessions) and repetitive behaviors (compulsions).

Flooding

A psychological treatment method where the subject is exposed to their fear all at once, in a safe environment, to diminish the fear response.

Response Cost

A negative punishment technique in which an undesired response results in either the withdrawal of or failure to obtain reinforcement.