Dirty surplus accounting is: not allowed by U.S. GAAP. is a sign that a firm\'s

Question

Dirty surplus accounting is:

not allowed by U.S. GAAP.

is a sign that a firm's accounting methods are misleading (dirty).

is related items that are not easily forecastable.

is a result of IRS rules that go against accrual accounting method such as accelerated deprecation.

not allowed by U.S. GAAP.

is a sign that a firm's accounting methods are misleading (dirty).

is related items that are not easily forecastable.

is a result of IRS rules that go against accrual accounting method such as accelerated deprecation.

Explanation / Answer

Correct Option is A. Not allowed by U.S.GAAP

Explanation: Dirty Surplus accounting is reporting income items in the statement of shareholders equity rather than stating the same in the income statement.This pratise is allowed by IFRS and not US GAAP.

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