question archive 1) Which of the following are the same under both GAAP and IFRS? a
1) Which of the following are the same under both GAAP and IFRS? a
Subject:BusinessPrice: Bought3
1) Which of the following are the same under both GAAP and IFRS?
a. The journal.
b. The ledger.
c. The chart of accounts.
d. All of the above.
e. Only a & c.
2: Which of the following is true?
a. Transaction analysis is completely different under IFRS and GAAP.
b. Most transactions are recorded differently under IFRS and GAAP.
c. Transaction analysis is the same under IFRS and GAAP, but some transactions are recorded differently.
d. All transactions are recorded the same under IFRS and GAAP.
3: Revenue recognition under IFRS is
a. Substantially different from revenue recognition under GAAP.
b. Generally the same as revenue recognition under GAAP, but with more detailed guidance.
c. Generally the same as revenue recognition under GAAP, but with less detailed guidance.
d. Exactly the same as revenue recognition under GAAP.
4: Both IFRS and GAAP require disclosure about
a. Accounting policies followed.
b. Judgements that management has made in the process of applying the entity's accounting policies.
c. The key assumptions and estimation uncertainty.
d. All of the above.
e. Only b & c.
5: The use of fair value to report assets
a. Is not allowed under GAAP or IFRS.
b. Is required by GAAP and IFRS.
c. Is increasing under GAAP and IFRS, but GAAP has adopted it more broadly.
d. Is increasing under GAAP and IFRS, but IFRS has adopted it more broadly.
6: Closing entries are made
a. In order to terminate the business as an operating entity.
b. So that all assets, liabilities, and owner's capital accounts will have zero balances when the nex accounting period starts.
c. In order to transfer net income (or loss) and owner's drawings to the owner's capital account.
d. So that financial statements can be prepared.
7: Flip Company purchased merchandise from Flop Company with freight terms of FOB shipping point. The freight costs will be paid by the
a. Seller.
b. Buyer.
c. Transportation company.
d. Buyer and the seller.
8: A Sales Returns and Allowances account is not debited if a customer
a. Returns defective merchandise.
b. Receives a credit for merchandise of inferior quality.
c. Utilizes a prompt payment incentive.
d. Returns goods that are not in accordance with specifications.
