Which of the following statements about the GAAP rules and IFRS is true?
A)The last-in, first-out (LIFO)accounting method is allowed by IFRS but banned by GAAP.
B)All companies listed on EU stock exchanges are required to use GAAP, while those listed on the New York stock exchange are required to use IFRS.
C)A US company seeking to raise funds in Germany has to prepare a financial reporting according to GAAP rules only.
D)Adhering to US GAAP rules as well as IFRS creates extra labor and paperwork for multinational firms.
E)China is the only country where accounting rules follow both GAAP and IFRS.

Question

Quizplus · Accepted Answer

Adhering to both US GAAP and IFRS can indeed create additional work for multinational companies, as they may need to prepare separate financial statements to comply with the accounting standards applicable in different jurisdictions.

Which of the Following Statements About the GAAP Rules and IFRS