WGU C243 ACCT 5100 Advanced Financial Accounting OBJECTIVE ASSESSMENT GUIDE Q & S 2025/2026

1. Which of the following statements is true about IFRS
and GAAP convergence?
 A) IFRS is entirely rules-based while GAAP is principlesbased.
 B) The IASB and FASB have never collaborated.
 C) The convergence process has resulted in some
standards being adopted by both IFRS and GAAP.
 D) IFRS prohibits the use of fair value.
 Correct Answer: C
 Rationale: The IASB (International Accounting
Standards Board) and FASB (Financial Accounting
Standards Board) have collaborated to align their standards
to enhance comparability.
2. When assessing impairment of an asset, the
recoverable amount is defined as:
 A) The fair value of an asset.
 B) The higher of its net selling price and its value in use.
 C) The book value of the asset.
 D) The cost incurred to acquire the asset.
 Correct Answer: B
 Rationale: The recoverable amount is determined as
the higher of the asset's fair value less costs to sell and its
value in use.
### Fill-in-the-Blank Questions
3. The ____ method is primarily used for accounting for
investments in associates under IFRS.
 Correct Answer: equity
 Rationale: The equity method recognizes the investor's