Which of the Following Is a Correct Statement About Gaap
Which of the following is a CORRECT statement about GAAP and IFRS?
A)IFRS prefers valuing assets at historical cost while GAAP prefers using fair value.
B)IFRS is more "rules-based" than GAAP.
C)The FASB and the IASB are working towards convergence of standards.
D)The SEC will require all companies to use IFRS beginning in 2013.
To be useful,accounting information must have the fundamental qualitative characteristics of:
A)comparability and relevance.
B)relevance and faithful representation.
C)materiality and understandability.
D)faithful representation and timeliness.
All of the following are true statements about the entity assumption EXCEPT for:
A)the entity assumption draws a sharp boundary around each entity.
B)the transactions of the business cannot be combined with the transactions of the owner.
C)the entity assumption ensures that the business will continue indefinitely.
D)under the entity assumption,the entity is any organization that stands apart as a separate economic unit.
Verifiability means that the information:
A)is timely and understandable.
C)must be capable of being checked for accuracy,completeness and reliability.
D)is material and relevant.