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Exam CFE - Financial Transactions and Fraud Schemes All Questions

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Exam CFE - Financial Transactions and Fraud Schemes topic 1 question 151 discussion

Which of the following is TRUE regarding financial reporting practices and accounting frameworks, such as U.S. generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS)?

  • A. Publicly traded companies must adhere to the specific financial reporting practices in their jurisdiction.
  • B. U.S. GAAP is a principle-based accounting framework, whereas IFRS is a rules-based accounting framework.
  • C. All organizations must use U.S. GAAP if they conduct business with entities in the United States.
  • D. Management determines which accounting framework an organization will adhere to for financial reporting.
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Suggested Answer: D 🗳️

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_denw
1 week, 2 days ago
Selected Answer: A
Publicly traded companies are legally required to follow the accounting standards of the country or jurisdiction in which they are listed or operate.
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