All of the following statements regarding valuation of receivables under U. S. GAAP and IFRS are true except: Multiple Choice Both require that receivables be reported net of estimated collectibles. Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible. Both require the allowance method for uncollectibles unless uncollectibles are immaterial. Both allow using percent of sales, percent of receivables, or aging of receivables to estimate uncollectibles. Both require that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.

Both require that the expense related to uncollectibles be recorded when the receivable is determined to be uncollectible.

Explanation:

GAAP is an acronym for Generally Accepted Accounting Principles, it was adopted by the U.S. Securities and Exchange Commission (SEC) and is the comprehensive accounting rules and standard used in recording and reporting financial information.

The IFRS is an acronym for International Financial Reporting Standards,International Financial Reporting Standards, it is a set of accounting rules that ensure financial statements are consistent, transparent and comparable globally.

Valuation of receivables under U.S. GAAP and IFRS requires;

- that receivables be reported net of estimated collectibles.

- the allowance method for uncollectibles unless uncollectibles are immaterial.

- using percent of sales, percent of receivables, or aging of receivables to estimate uncollectibles.

- that the expenses for estimated collectibles be recorded in the same period revenues generated from those receivables are recorded.

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