Which of the Following Is Correct Regarding the Guidance Provided

question 3

Multiple Choice

Which of the following is correct regarding the guidance provided by IFRS and U.S.GAAP?

• A)In the construction industry,IFRS provides specific guidance for revenue recognition on contracts.
• B)In the software industry,IFRS provides specific guidance for typical software arrangements,upfront fees,and multiple deliverable arrangements.
• C)In the software industry,U.S.GAAP only provides general guidance.
• D)None of the above.

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Definitions:

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Monetary Unit Assumption

An accounting principle that assumes transactions and events can be expressed in monetary units.

Dollar Amounts

Units of currency used in financial transactions or accounting to represent values or costs.