5. A transaction gain or loss at the settlement date is: ble A) the difference between the recorded dollar amount of an account receiva denominated in a foreign currency and the amount of dollars received a change in the exchange rate quoted by a foreign exchange trader. the diff trader at the settlement date. synonymous with the translation of foreign currency financial statements into dollars. B) C) erence between the buying and selling rate quoted by a foreign exchange D) 6. Accounting under IFRS and US GAAP is similar for all of the following topics except A) B) C) D) related party transactions. research and development costs. changes in methods. changes in estimates. 7. The major difference between IFRS and US GAAP in accounting for inventories is that US GAAP prohibits the use of specific identification. A) B) C) D) IFRS requires the use of the LIFO cost flow assumption. US GAAP allows the use of the LIFO cost flow assumption. US GAAP prohibits the use of the LIFO cost flow assumption 8. In accounting for liabilities, IFRS interprets "probable" as A) B) C) D) more likely than not. somewhat possible. possible and not remote. likely. 9. Accounting terminology that differs between IFRS and US GAAP include all of the following except A) the use by IFRS of "issued capital" for common stock. B) the use by IFRS of "other capital reserves" for retained earnings. C) the use by IFRS of "turnover" for revenue. D) the use by IFRS of "share premium" for additional paid-in-capital