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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 216 discussion

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

  • A. U.S. GAAP is a principle-based accounting framework, and IFRS is a rules-based accounting framework.
  • B. Organizations that conduct business internationally must adopt IFRS as their accounting framework for financial reporting.
  • C. The financial reporting practices that a publicly traded company must follow are determined by the company's jurisdiction.
  • D. All publicly traded companies are required to adopt either U.S. GAAP or IFRS as their accounting framework.
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Suggested Answer: C 🗳️

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_denw
1 week ago
Selected Answer: C
The financial reporting practices that a publicly traded company must follow are determined by the company's jurisdiction.
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