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:

Output

The result or product that comes from a system, process, or activity.

Recorded Information

Information that has been documented and stored in a retrievable format.

Processed

Altered from its natural state, typically through physical or chemical means, often to prepare it for consumption or utilization.

Inventory Monitoring

The process of overseeing and managing the goods and materials that a business holds for the ultimate goal of resale or use.