In order to increase comparability, in recent years, the FASB and IASB have made efforts to reduce the differences between U.S.GAAP and IFRS through a process known as
A) convergence
B) monetary unit assumption
C) the cost principle
D) the fair value principle

Question

Quizplus · Accepted Answer

The process of reducing the differences between U.S. GAAP and IFRS is called convergence. This involves the FASB and IASB working together to develop and modify accounting standards in order to increase comparability between the two sets of standards. The other choices, including the monetary unit assumption, the cost principle, and the fair value principle, are all accounting principles or concepts that are used in accounting standards but do not specifically relate to efforts to reduce differences between U.S. GAAP and IFRS.

In Order to Increase Comparability, in Recent Years, the FASB