Which statement about US GAAP and IFRS accounting standards is true?O US GAAP requires that assets be divided up into current and non-current assets whileIFRS does not require such division.O Both US GAAP and IFRS require that owners' equity be listed after liabilities.O US GAAP will generally list assets and liabilities in order from most liquid to least liquidwhile IFRS will generally do the opposite.Both US GAAP and IFRS require that non-current liabilities be listed before currentliabilities.

US GAAP is a set of principles which all are followed by all company in U.S. and IFRS is also…

Which statement about US GAAP and IFRS accounting standards is true? US GAAP requires that assets be divided up into current and non-current assets while IFRS does not require such division. Both US GAAP and IFRS require that owners' equity be listed after liabilities. US GAAP will generally list assets and liabilities in order from most liquid to least liquid while IFRS will generally do the opposite. Both US GAAP and IFRS require that non-current liabilities be listed before current liabilities,

Which statement about US GAAP and IFRS accounting standards is true? US GAAP requires that assets be divided up into current and non-current assets while IFRS does not require such division. Both US GAAP and IFRS require that owners' equity be listed after liabilities. US GAAP will generally list assets and liabilities in order from most liquid to least liquid while IFRS will generally do the opposite. Both US GAAP and IFRS require that non-current liabilities be listed before current liabilities,

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA1: International Financial Reporting Standards

Section: Chapter Questions

Problem 7MCQ

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Which of the following statements about IFRS and U.S. GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP allow the use of title “balance sheet” or “statement of financial position.” b. One difference between the reporting requirements under IFRS and those of U.S. GAAP balance sheet is that an IFRS balance sheet may list long-term assets first. c. Both IFRS and U.S. GAAP require that comparative information be reported. d. Both IFRS and U.S. GAAP require that property, plant and equipment be revalued on the balance sheet.
Which of the following statements about IFRS and GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP distinguish between current and non-current assets and liabilities. b. The presentation formats required by IFRS and GAAP for the balance sheet are similar. c. Both IFRS and GAAP require that comparative information be reported.
Which of the following statements about IFRS and GAAP accounting and reporting requirements for the balance sheet is not correct? a. Both IFRS and GAAP distinguish between current and non-current assets and liabilities. b. The presentation formats required by IFRS and GAAP for the balance sheet are similar. c. Both IFRS and GAAP require that comparative information be reported. d. One difference between the reporting requirements under IFRS and those of the GAAP balance sheet is that an IFRS balance sheet may list long-term assets first.
In accordance with PAS 1, which of the following gains or losses from reclassification of financial assets need not be presented separately in the profit or loss section or the statement of profit or loss? A.None of these. B. Reclassification of financial assets out of the FVTOCI measurement category to FVTPL C. Reclassification of financial assets out of the FVTPL measurement category. D.Reclassification of financial assets out of the amortized cost measurement category to FVTPL
Which of the following statements is correct regarding income reporting under IFRS?(a) IFRS does not permit revaluation of property, plant, and equipment, and intangible assets.(b) IFRS provides the same options for reporting comprehensive income as GAAP.(c) Companies must classify expenses by nature.(d) IFRS provides a definition for all items presented in the income statement.
(Based on Appendix 7B) Do U.S. GAAP and IFRS differ in the ability of a company to recognize in net incomethe recovery of impairment losses of accounts and notes receivable?
Which statement is incorrect regarding classification of financial assets? a. An entity can classify financial assets that meet the amortized cost criteria as at FVPL if doing so eliminates or reduces an accounting mismatch. B. In order to be classified at fair value through OCI, a debt instrument needs to have either simple principal and interest cash flows or be held in a business model in which both holding and selling financial assets are integral to meeting management’s objectives. C. An investment in equity instrument may not be classified as financial asset subsequently measured at amortized cost. D. Reclassifications of financial assets are only permitted on the change of an entity’s business model and are expected to occur only infrequently.
Companies that use IFRS: a. may report all their assets on the statement of financial position at fair value. b. are not allowed to net assets (assets − liabilities) on their statement of financial positions. c. may report non-current assets before current assets on the statement of financial position. d. do not have any guidelines as to what should be reported on the statement of financial position.
Which statement is incorrect regarding reclassification of financial assets? a) Reclassifications to FVTPL measurement category result to amounts recognized in profit or loss. b.)The effective interest rate is determined on the basis of the fair value of the asset at the reclassification date when an entity reclassifies a financial asset out of FVTPL measurement category. c.) The effective interest rate and the measurement of expected credit losses are not adjusted as a result of the reclassification from AC measurement category to FVTOCI and vice versa. d.) All reclassifications out of FVTOCI measurement category result in ‘reclassification adjustm
Under what cisrcumstances under PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL? A. where the business model approach is adopted B. where the financial asset passes the contractual cash flow characteristics test C. where the instrument is held to maturity D. if doing so eliminates or reduces an accounting mismatch
Which of the following is an assumption made in the preparation of the financial statements? Select one: a. The current market value is assumed to be less relevant than the original cost paid. b. Financial statements are prepared for a specific entity that is distinct from the entity's owners. c. The preparation of financial statements for a specific time period assumes that the balance sheet covers a designated period of time. d. Financial statements are prepared assuming that inflation
How should the assets and liabilities of a disposal group held for sale bereported? A. The assets and liabilities should be offset and presented as a single amount B. The assets of a disposal group should be reported separately as current assets and the liabilities should be shown as current liabilities separately. C. The assets and liabilities should offset and presented as a deduction from equity. D. There should be no separate disclosure of assets and liabilities of the disposal group