Which of the following statements correctly compares international accounting standards?
A) The standards are becoming less similar over time.
B) The standards are typically more lenient in the United States.
C) The standards are stricter in the United States in some regards.
D)Balance sheets differ, but income statements are similar in all countries.

Question

Quizplus · Accepted Answer

International accounting standards are generally considered to be stricter in the United States in some regards, such as accounting for stock options and revenue recognition. However, there is ongoing convergence between U.S. GAAP and international standards, which may lead to greater similarity in the future. Balance sheets and income statements may also differ between countries due to differences in accounting policies and legal requirements. Option A is incorrect because the trend is towards greater similarity and convergence, not less. Option B is incorrect because the United States is often considered to have stricter standards than other countries. Option D is incorrect because income statements can also differ between countries, for example in the treatment of extraordinary items or gains and losses on foreign currency transactions.

Which of the Following Statements Correctly Compares International Accounting Standards