Which of the following is a true statement about the terms used on the balance sheet?
A) U.S.GAAP requires a standard set of terms on the balance sheet.
B) IFRS requires a standard set of terms on the balance sheet.
C) Terminology is consistent across all countries.
D) Neither IFRS nor U.S.GAAP requires a standard set of terms on the balance sheet.

Question

Quizplus · Accepted Answer

Both IFRS and U.S.GAAP allow for some flexibility in the terminology used on the balance sheet. While there are some common terms, such as "assets" and "liabilities," there may be some differences in how certain items are classified or labeled. This can make it challenging to compare balance sheets across different companies or countries.

Which of the Following Is a True Statement About the Terms