Which of the following statement is true regarding the recording process?
A) Because IFRS rely more on fair value and less on historical cost than U.S. GAAP the double-entry accounting system is not widely used by companies who use IFRS.
B) Both IFRS and U.S. GAAP, use the same general rules of debits and credits and the steps in the recording process.
C) A trial balance using IFRS is organised by first showing the accounts from the statement of financial position followed by accounts from the income statement; a trial balance using U.S. GAAP is organized using the opposite order.
D) All of the choices are correct regarding the recording process.

Question

Quizplus · Accepted Answer

Both IFRS and U.S. GAAP use the same general rules of debits and credits and the steps in the recording process. Therefore, statement A and C are false, and statement D is incorrect because statement A is false.

Which of the Following Statement Is True Regarding the Recording