Question

1. GAAP refers to guidelines for accounting information in the United States. The acronym GAAP in this statement refers to:

2. True or False: The accounting guidelines required in the United States are called Generally Accepted Accounting Principles (GAAP).

3. True or False: IFRS are a global set of accounting standards; however, these standards are not yet utilized in any country.

4. True or False: IFRS are established by the Financial Accounting Standards Board (FASB).

5. The acronym IFRS standards for:

6. True or False: Both GAAP and IFRS require the use of accrual accounting for external reporting.

7. True or False: The main goal of both GAAP and IFRS is to ensure companies produce financial information that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to companies.

8. True or False: Regarding inventory valuation, both GAAP and IFRS permit the use of LIFO (Last In First Out).

9. True or False: IFRS requires tangible assets to be recorded at cost.

10. True or False: Generally Accepted Accounting Principles are established by the Financial Accounting Standards Board and International Financial Reporting Standards are established by the International Accounting Standards Board.

Answer 1

GAAP = Generally Accepted Accounting Principles

1. True. Guidelines required in USA are known as GAAP

2. False. IFRS are utilized in more than 90 counties.

3. False . IFRS are established by International accounting standards board

4. IFRS = International accounting standards board

5. True. Both require accrual accounting.

6. True. The main goal of both is to provide useful information to investors , landers and creditors.

7.False. GAAP permits LIFO while IFRS does not.

8. False. Initially asset should be recorded at cost. Afterwards There are two models in IFRS. Cost model and revaluation model. Therefore company can follow revaluation model too. So IFRS does not require to record asset at cost.

9. True.