1. Property, plant and equipment are valued at historical cost under US GAAP while IFRS allows the assets to be valued at either historical cost or revalued amounts. historical cost or revalued amounts under both IFRS and US GAAP. revalued amounts under IFRS. historical cost under both IFRS and US GAAP. A) B) C) D) 2. IFRS and US GAAP differ with regard to financial statement presentation in all of the following except A) B) C) D) US GAAP requires expenses to be listed by function while IFRS requires expenses to be listed by nature. IFRS requires two years of comparative income statements while under US GAAP, three years of income statements are required. IFRS generally requires that assets be listed in order of increasing liquidity while US GAAP requires that assets be listed in order of decreasing liquidity IFRS prohibits extraordinary items which are allowed by US GAAP 3. An indirect exchange rate quotation is one in which the exchange rate is quoted: A) in terms of how many units of the domestic currency can be converted into one unt B) C) of foreign currency in terms of how many units of the foreign currency can be converted into one unit of domestic currency. for the immediate delivery of currencies exchanged. for the future delivery of currencies exchanged. D) 4. A transaction gain is recorded when there is an: A) exporting transaction and the exchange rate increases. B) exporting transaction and the exchange rate decreases. C) importing transaction and the exchange rate increases D) none of these