Which of the following statements best describes how GAAP and IFRS treat cash?
A) Accounting definitions for cash are similar for U.S. GAAP and IFRS.
B) IFRS are more strict about what is considered cash than GAAP .
C) GAAP is more strict about what is considered cash than IFRS.
D) IFRS requires a cash balance of at least 10% of total assets; IFRS requires a cash balance of at least 5% of total assets.
E) GAAP requires anything other than coins and bills in hand to be classified as cash equivalents while IFRS classifies coins and bills as cash equivalents.

Question

Quizplus · Accepted Answer

Accounting definitions for cash are similar for U.S. GAAP and IFRS, meaning that they both define cash as coins, currency, and funds on deposit with banks or other financial institutions. There is no significant difference between the treatment of cash by these two accounting frameworks.

Which of the Following Statements Best Describes How GAAP and IFRS