All of the following regarding accounting for Treasury Stock under U.S. GAAP and IFRS is true except:
A. Only gains are recognized on retirements of treasury stock under IFRS.
B. A company's assets and equity are always reduced by the amount paid for the retiring stock.
C. Gains are not recognized on retirements of treasury stock under U. S. GAAP.
D. U. S. GAAP applies the principle that companies do not record gains or losses on transactions involving their own stock.
E. IFRS applies the principle that companies do not record gains or losses on transactions involving their own stock.
Answer: A
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In related-party transactions, fraud occurs when:
a. the transactions are not properly disclosed. b. assets are transferred between related parties at fair value. c. arrangements are made between two parties that create a conflict of interest in a business setting. d. the arrangement creates operating revenues.
If an expense has been incurred but not yet recorded, then the end-of-period adjusting entry would involve
a. a liability account and an asset account. b. a liability account and a revenue account. c. a liability and an expense account. d. a receivable account and a revenue account.
The percentage analysis of increases and decreases in corresponding items in comparative financial statements is referred to as horizontal analysis
Indicate whether the statement is true or false
Bribing someone during the conduct of business is a violation of which U.S. law?
A. SPCA B. FCPA C. SEC D. USDA