According to the conceptual framework jointly developed by the IASB and the FASB, financial
information is relevant when it - answer✔provides predictive or confirmatory value.
The primary source of generally accepted accounting principles (GAAP) in the United States at
this time is the: - answer✔Financial Accounting Standards Board (FASB).
According to the conceptual framework jointly developed by the IASB and the FASB,
fundamental qualitative characteristics of financial reporting include: - answer✔Relevance and
faithful representation.
The principal benefit of a single set of global financial reporting standards is - answer✔Increased
ease of international capital flow.
Which of the following statements is true?
a. U.S. generally accepted accounting principles (GAAP) are principles-based.
b. International financial reporting standards (IFRS) are principles-based.
c. U.S. GAAP is less detailed than IFRS.
d. U.S. GAAP involves more judgement in the application of accounting principles. - answer✔b.
International financial reporting standards (IFRS) are principles-based.
Compared to International Financial Reporting Standards (IFRS), U.S. GAAP - answer✔is less
prone to legal difficulty because U.S. GAAP is rules-based, while IFRS is principles-based.
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