With Regard to Reporting Contingent Liabilities on a Balance Sheet,financial

question 27

Multiple Choice

With regard to reporting contingent liabilities on a balance sheet,financial statements prepared under International Financial Reporting Standards (IFRS) will:

• A)Have fewer contingent liabilities accrued than under U.S.GAAP because the IFRS guideline for "probable" is a higher percentage than the U.S.GAAP guideline for "probable".
• B)Have more contingent liabilities accrued than under U.S.GAAP because the IFRS guideline for "probable" is a lower percentage than the U.S.GAAP guideline for "probable".
• C)Have more contingent liabilities accrued than under U.S.GAAP because IFRS requires all lawsuits,environmental problems,and product warranties that are reasonably estimable to be accrued while U.S.GAAP requires accrual only if losses are reasonably possible of being incurred.
• D)Have fewer contingent liabilities accrued than under U.S.GAAP because IFRS requires a more subjective evaluation of the probability of occurrence than does U.S.GAAP.

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Definitions:

Authoritarian

Describes a leadership or parenting style characterized by strict rules and expectations with limited flexibility.

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Societies that stress the importance of personal achievement and independence, often at the expense of community and collective goals.

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The scientific study of psychological disorders and abnormalities in behavior, emotions, and thought processes.

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