Which of the following statements best describes how GAAP and IFRS treat cash?
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GAAP is more strict about what is considered cash than IFRS. |
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IFRS requires a cash balance of at least 10% of total assets; IFRS requires a cash balance of at least 5% of total assets. |
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IFRS are more strict about what is considered cash than GAAP. |
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Accounting definitions for cash are similar for U.S. GAAP and IFRS. |
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GAAP requires anything other than coins and bills in hand to be classified as cash equivalents while IFRS classifies coins and bills as cash equivalents. |