U.S.GAAP and IFRS aid the investors' analysis process by requiring firms to classify income transactions in particular ways in the financial statements which include
A)Recurring versus nonrecurring.
B)Central versus peripheral.
C)Unrealized versus realized gains and losses from changes in the fair values of assets and liabilities.
D)Adjustments for errors and changes in accounting principles and accounting estimates.
E)all of the above

Question

Quizplus · Accepted Answer

Both U.S.GAAP and IFRS require firms to classify income transactions in particular ways in the financial statements including recurring versus nonrecurring, central versus peripheral, and unrealized versus realized gains and losses from changes in the fair values of assets and liabilities. They also require adjustments for errors and changes in accounting principles and accounting estimates. Therefore, option E, which includes all of the above choices, is the best choice.

USGAAP and IFRS Aid the Investors' Analysis Process by Requiring