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150 Cards in this Set
- Front
- Back
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Which of the following groups is a supranational organization?
A) United Nations B) Organizzation for Economic Cooperation and Development C) International Federation of Accountants D) All of the Above |
D
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International accounting can be defined in terms of which of the following levels?
A) Supranational Organizations B) Company C) Country D) All of the Above |
D
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The factor used to convert from one country's currency to another country's currency is called the?
A. Interest Rate B. Cost of Capital C. Exchange Rate D. Strike Price |
C
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What is the term used to describe the possibility that a foreign currency will decrease in US value oer teh life of an asset such as AR?
A. Foregin exchange translation B. foregin exchange risk C. hedging d. foregin currency options |
B
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Foregin exhange risk arises when:
a. business transactions are denominated in foregin currencies. b. sales are made to customers in foreign country. c. goods or services are purchased from suppliers in a foreign country d. accounting reports are prepared in a foreign currency |
A
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As used in international accounting a "hedge" is:
a. a buiness transation made to reduce the exposure of foreign exchange risk. b. the legal barrier between the various divisions of a multinational company c. the loss in $ resulting from a decline in the value of $ relative to foreign currency. d. one form of foreign direct investment |
A
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Purchasing an option to buy foreign currency at a predetermined exchange rate in order to reduce exchange risk is called?
a. transfer pricing b. hedging c. translating d. cross-listing |
B
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What term is used to describe the process of reducing foreign exchange risk?
A. International Accounting B. exposure C. hedging D. globalization |
C
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The ownership and control of foreign assets such as a manufacturing plant is called:
A. Hedge B. Foreign direct investment C. exposure D. derivatives |
B
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Which of the following is an example of a greenfield investment?
A. Nike contracts with a footwear company in china to make athletic shoes. B. A chinese oil company buys a US oil company C. Toyota, builds an assembly plant in Ohio D. Daimler mergers with Chryslter |
C
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Which of the following is a reason for foreign direct investment?
A. Reduce costs of doing business B. protect domestic markets C. protect foreign markets D. All of the above |
D
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What is transfer pricing?
A. The cost to convert from one country's GAAP to another countries GAAP B. The value of sales made in a foreign country C. the method of recording transactions between divisions of the same company. D. Taxes paid on sales in foreign country. |
C
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A corp has a parts division in a country. Its assembly division is in country B. To minimize the corps overall income tax, how should A set its transfer prices between its parts and assembly division?
A. the parts division should sell parts to the assembly division at low prices. B. the parts division should sell parts to the assembly division at high prices. C. It doesn't matter what transfer price is used cuz the division are of the same company. D. Transfer pricing has nothing to do with the total tax paid by corp. |
B
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The process by which a domestic company sells its stock, already sold on its domestic exchange on a foreign stock exchange is known as:
A. Sec registration B. IPO C. Consolidation D. crosslisting |
D
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What is the advantage of foreign direct investment?
A. retain advantage over competition B. Reducing transportation cost C. Creating a company tailored to foreign markets unique characteristic. D. all the above |
D
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Foreign companies whose stock are listed on NYSE must report their income in terms of?
A. international accounting standard. B. the gasp of their home country C. US GAAP D. All the above |
C
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Which of the following is a reason a company might cross-list itself on a foreign stock exchange?
A. it wants to hedge against currency fluctuations B. it is less expensive to obtain acquisition currency for acquiring a foreign company C. It wants to obtain acquision currency for acquiring foreign company D. It is a means of accomplishing foreign direct investment |
C
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Which of the following is true about foreign direct investment.
A. It is a means of reducing transport costs B. since 1980s foreign direct investment has been relative stable worldwide C. Only very large corporations are undertaking FDI D. FDI refers only to the amount of money US corps put into non US business |
A
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Why would a company want its stock cross listed on the stock exchange of several countries?
A. to make financial reporting less burdensome for its accounting firm B. in order to use IFRS C To gain access to more financial resources than are available in its home country. D. All of the above |
C
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How should we recognize the difference between the value of a receivable in a foreign currency at the time it was recorded and the time the cash was received?
A. adjustment to stockholders equity B. adjustment to sales rev C. extraordinary gain D. prior period adjustment |
A
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What is the term used to describe combining the financial statement of all subsidiaries both foreign and domestic into the financial statements of parent?
A. Convergence B Hedging C Consolidation D Incorporation |
C
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Which of the following statements is true about us tax of foreign subs?
A. the us doesn't tax income generated on subs incurred in foreign countries B. us multinationals pay tax on their worldwide income as soon as its earned. C. Transfer pricing will eliminate taxes by the us gov't on multinational corps D. us tax on foreign ops doesn't have to be paid until the income is brought back to the US |
D
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Why is auditing a multinational corp potentially more difficult than auditing an entity that has only domestic ops?
A. Languages B. culture C multiple sets of accounting standards D. All the above |
D
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What group is primarily responsible for the creation of IFRS?
A. FASB B. IFAD C. IFA D. IASB |
D
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Which of the following is an advantage of having a single set of accounting standards worldwide?
A. Reduce the accounting costs for multinational corp B. Increase power of the FASB C. reduce the number of multinational corps on NYSE D. increase the diversity of accounting methods used by multinational corps |
A
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Assume that A corp is US based. Its foreign subs must report income in their respective countries according to GAAp in those countries. How must A corp report its consolidated financial statements?
A. choose any one counties accounting standards and combine the subs reports into the parents using that ones gasp. B. since the company is operating in several countries, the IAS must be used for consolidated FS C. Since they are US, US GAAP must be used for console. FS D. on the console. FS each subsidiary financial results must be show in their home currency |
C
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For a us multinational corp, consolidating the FS of foreign subs require two steps. 1, foreign subs must be restated according to us gaap. Step 2?
A. convert the accout balances to us dollars B determine the exchange rate gain or loss C. calculate the translation adjustment D. Restate the income using IAS |
A
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When setting transfer pricing amount intl subs the corp must:
A. make sure that the total tax is minimized B ensure that the transfer prices are acceptable to the taxing authorities in the countries involved. C. do whatever it takes to make taxes paid in the US as low as possible D. follow the transfer pricing policy used for domestic transfers |
B
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Which of the following statements is true about ITP?
A. It is a violation of the foreign corrupt practices act B. it is accomplished using guidelines set up by FASB. C. It is used to minimize the amount of worldwide taxes. D. most countries do not regulate it |
C
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The primary difference between IAS 37 AND US GAAP concerning the treatment of contingent liabilities is?
A. definition of terms B. measurement C. classification on the bs D. disclosure of relevant info |
A
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The term provision as used by IAS 37 is most closely related to what term in US GAAP.
A. Contingent liability where outflow of resources is REMOTE B contingent liability where the outflow of resources is PROBABLE C. current liability where the outflow is difficult to measure D. reserve for bad debt, where the amount unrecoverable is UNCERTAIN |
B
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Under IAS 37, how are contingent liabilities treated in the fs?
A. IAS 37 doesn't address contingent liability B. they are recorded as current liabilities if the amount is measurable C. they are disclosed in the notes to fs when there is more than a remote possibility of an outflow of resources D. They are not disclosed |
C
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What is a contingent asset?
A. there is no such thing B. this is an asset that has been put up as collateral against a loan C. this a possible inflow of resources arising from future activity. D. it is a probable asset arising from past events, whose existence is yet to be confirmed by definitively by a future event |
D
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According to IAS 37, how should contingent assets be recognized?
A. They should be disclosed in the fs if the inflow of resources is probable B. they should be recognized like any other asset with a debit to contingent assets C. they should not be disclosed anywhere in the fs due to uncertainty. D. they should only be disclosed in the notes to the fs if the inflows of resources are virtually certain |
A
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Under IAS 37 inflows of resources that are virtually certain to be received should be:
A. disclosed as contingent assets in the notes to fs B. Recognized as assets C. undisclosed until management is absolutely certain resources will be received. D. reported only in the cash flow statement |
B
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Why is it difficult to compare IAS 18, revenue, to us gasp?
A. IASB def of rev is very complicated, whereas us gasp is more straightforward B. revenue is not defined in us gasp C. there is no single standard in us gasp that deals solely with rev D. under us gasp rev is defined in terms of cash, whereas IAS 18 defines rev in terms of variety of resources |
C
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Under IAS 19 employee benefits, which of the following are covered?
A. compensated absences and bonuses B. post employment benefits C. deferred compensation and disability D. all the above |
D
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Under IFRS 2, share based payments, what approach is used to account for the transaction?
A. comparatie transtion B. fair value C. market D. notional value |
B
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Under both IFRS and us gasp, in a equity settled share based payment transition how are such payments to non employees measured?
A. at the cost of the goods or services B. both standards are silent as to treatments C. always at FV of equity instrument D. at the FV of goods or services received, if a reliable determination is available, otherwise FV of equity instrument |
D
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Under IAS 36 income taxes, which issue is covered?
A. temp differences B. operating loss carry forwards C. tax credit carry forwards D all the above |
D
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Under IASB exposure draft, income tax, how would the term substantively enacted as it applies to tax law determined?
A. when the affected jurisdiction has issued final regs with respect to a tax law. B. when any future steps in the enactment process can't change the outcome C. when one part of a bicameral legislature has passed a tax bill. D. all the above |
B
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Under us gasp a deferred tax asset must be realized when:
A. realization is probable B. realization is possible C. realization is more likely than not D. realization is greater than 75% likely |
C
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what is the journal entry required to recognize a deferred tax asset of 50?
A. dr. deferred tax asset 50, cr. income tax benefit of 50 B. dr. deferred tax asset of 50, cr equity 50 C. dr. income tax exp, cr. deferred tax asset D. dr. deferred tax asset, cr. deferred tax liablitty |
A
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Under IAS 12 income tax, how is the relationship between hypothetical tax exp based on statutory rates and reported tax exp based on the effective tax rate?
A. a numerical reconciliation betweent ax expense based on the statutory rate in the home country and tax expense based on the effective tax rate must be presented. B. a numberical reconciliation between tax expense based on weighted avg statutory on the effective tax rate must be presented. C. either A or B are acceptable D. neither a nor B |
C
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What kinds of temporary differences related to income taxes can arise under IFRS that don't occur under US GAAP?
A. book and tax differences related to the revaluation of pep for book purposes and cost method for tax purposes. B. book and tax differences related to the calc of impairments for book purposes with no like adjustment for tax purposes. C. both A and B D use of lifo inventory method for book purposes and the fifo inv method for tax |
C
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Under IAS 1 Presentation of FS, how must deferred taxes be classified on bs?
A. as either current asset or liability B. as always a concurrent asset or liability C. as either current or non current asset or liability D as a separately state positive or negative component of equity |
B
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IAS 18, rev, covers which types of revenues?
A. sales of goods B. rendering of services C. interest, royalties, dividends D. all the above |
D
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Under IAS 18 which of the following is NOT a condition that must be met in order for revenue from a sale of goods be recognized?
A. the significant risk and rewards of ownership of goods have to be transferred to buyer. B. there must be a binding written contract. C. the amount of revenue can be measure reliably. D. neither continued managerial involvement normally associated with ownership nor effective control of goods retained. |
B
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Under IAS 18 which of the following is an example of retention of significant risks and rewards by seller?
A. the buyer has no right to recind the purchase. B. the seller is under no obligation for satisfactory performance not covered by normal warranties. C. goods are sold subject to installation but installation is not a significant part of the contract and has not yet been completed. D. receipt of revenue by the seller is contingent on the buyer generating revenue thhru its sale of goods |
D
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Under IAS 18, if four out of five conditions for recognizing revenue from sale of goods are met and the entity is 75% certain that revenue will be recognized as a result, how would a 100 sale be recognized at time of sale?
A. the recognition of the entire sale must be deferred until the fifth condition has met. B. 75 of sales price can be currently recognized and 25 will be treated as a liability. C. the entire 100 sales price can be currently recognized since most conditions are met. D. non of the above |
B
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What is true about both IFRS AND US GAAP with respect to service contracts?
A. IFRS AND US both allow the use of % completion B. Neither allow % completion C. IFRS allows %completion but US doesn't. D. US GAAP allows % completion but IFRS doesn't. |
C
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Under IAS 18, when it is probable that the economic benefits of interest, royalties, and dividend will flow to the enterprise and can be measure reliably, how should revenue be recognized?
A. interest income shall be recognized based on effective yield basis. B. royalties are recognized based on actual basis with reference to terms of agreement. C. dividends are recognized when the shareholders right to receive them is established D. All the above |
D
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IAS 32 defines a financial instrument as:
A. the currency of a foreign country in which the enterprise does business. B. a certified check C. any contract that gives rise to a financial asset of one entity and a financial liability to another. D. a recognized stock exchange |
C
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Under IAS 32 which of the following is a financial asset
A. investment in equity instruments B. investment in special purpose entity. C. a 30% investment in sub D. loans to other entities |
D
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Under Ias 32 which of the following is a financial liability?
A. a payable B. a bank loan C. an intercompany loan payable D. all the above |
D
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Under IAS 32 how should an equity instrument be classified?
A. it must always be classified as equity B. the entity has option to classify as liability or equity C. if it contains a contractual obligation that meets the definition of a financial inability, it should be classified as a liability. D. the entity should apportion the classification between liability and equity if there is a contraction obligation that meets the definition of financial liability. |
C
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Under IAS 39, financial instruments, which of the following is not a category in which a financial asset must be classified?
A. PPE B. held to maturity investment C. loans and receivable D. available for sale financial asset |
A
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Under IAS 39, financial instruments, which of the following terms describes the removal of a financial asset or liability from the bs when certain appropriate criteria is met?
A. decoupling B. extinguishment C. derecognition D. reversal |
C
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Under IAS 39, under what circumstances will derecognition of a financial liability occurs?
A. when the obligation has been paid. B. when the obligation has been cancelled. C. when the obligation has expired. D. all the above |
D
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What types of issues cause differences between IFRS ND GAAP?
A. measurement B. alternatives available C. disclosure D. all the above |
D
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Which of the following is generally true about the differences between US GAAP AND IASB?
A. US GAAP is more flexible B. US GAAP is more rule based and IASB is more principles based. C. More professional judgment is required to apply US. D. in all cases, US GAAP is more detained |
B
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Which of the following inventory valuation methods commonly used in the US in not under IAS 2 Invenltory.
A. LIFO B. FIFO C. weighted avg D. retail inventory method |
A
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Historical cost 12,000
replacement cost 9,000 expected selling price 10,000 expected selling cost 500 normal profit margin 10% sp Under IAS 2 what should BS report for Inventory? A. 9,000 B. 8,500 C. 9,500 D 10,00 |
C
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Historical cost 12,000
replacement cost 9,000 expected selling price 10,000 expected selling cost 500 normal profit margin 10% sp US Inventory?? A. 9,000 B. 8,500 C. 9,500 D 10,00 |
A
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Historical cost 12,000
replacement cost 7,000 expected selling price 9,000 expected selling cost 500 normal profit margin 10% sp Under IAS 2 what should BS report for Inventory? A. 7,000 B. 8,500 C. 7,600 D 9,000 |
B
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Historical cost 12,000
replacement cost 7,000 expected selling price 9,000 expected selling cost 500 normal profit margin 10% sp Assume subsequent to your adjustment the expected selling price increases to 13,000. What adjustment to inventory should be made in IAS 2. A. Inventory should be increased by (db.) 3500 B. Inventory should be increased (db) by 4000 C. No adjustment should be made to inventory once it is written down. D. Inventory Should be increased (db) by 1000 |
A
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Historical cost 12,000
replacement cost 7,000 expected selling price 9,000 expected selling cost 500 normal profit margin 10% sp US GAAP INV A. 9,000 B. 8,500 C. 9,500 D 10,00 |
C
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Historical cost 15,000
replacement cost 11,000 expected selling price 13,500 expected selling cost 800 normal profit margin 2,500 How will income under US compare to income reported under IFRS. A. Income will not be affected by reconciliation B. Income under US will be lower by 1700 C. Income under US will be lower by 2500 D. Equal A. 9,000 B. 8,500 C. 7,600 D 10,000 |
B
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Under IAS 2, what adjustments need to be made after inventory write down if the selling price subsequently increases?
A. No adjustment necessary B. It should be sold at the replacement cost. C. The inventory write down should be reversed to bring it in line with the new net realizable value. D. recovery of inventory loss should be debited to reflect increase in inv value. |
C
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What is the basis for choosing depreciation methods for fixed assets under IAS 16 PPE
A. Tax minimization B. profit maximization C. useful life of the fixed asset D. pattern of economic benefits derived from the asset |
D
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According to IAS 16 PPE, what is the term used to indicate the amount for which an asset could be exchanged between knowledgeable willing parties?
A. replacement cost. B. net realizable value C. fair market D. historical cost |
C
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Which of the following items should be included in the cost of PPE under IAS 16?
A. all costs directly attributable to getting the asset to the proper location. B. import duties and taxes C. estimated costs of removing assets D. all the above |
D
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In what ways does IAS 16 PPE differ from US GAAP concerning fixed asset measurement subsequent to initial recognition?
A. IAS allows for upward revaluation of asset based on fv B IAS does not allow acc dep. to be shown on bs. C. IAS requires that fixed assets be carried at fv less acc impairment losses. D. IAS allows both upward and downward revaluation, but US is only upward. |
A
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How does IAS 38 Intangible Assets differ from US GAAP with respect to development costs.
A. US does not allow capitalization of development costs B. US requires capitalization of development costs C. US treats development costs as part of goodwill and IAS trees these as intangible assets. D. US requires expensing of all development costs and IAS capitalizes. |
A
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How does the definition of asset impairment differ IAS 36 AND US?
A. US GAAP does not consdider selling price in determining impairment. B. US considers cash flows in assessing value of continued use, but doesn't discount them. C. Asset impairment is more likely to occur under IAS THAN US GAAP D. all the above |
D
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How should the cost of borrowing funds to acquire or construct PPE be accounted for under IASB?
A. its should be expensed in period incurred B. it should be added to there other costs of acquiring fixed assets to determine the amount for bs C. both methods are acceptable D. Neither method is accpetable |
B
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Under US GAAP, interest on loans secured to acquire fixed assets must be:
A. expensed in period incurred B. capitalized as part of the fixed asset cost C. either expensed currently or capitalized as part of the fixed asset cost D. changed against revenue in the year the asset is put into service |
B
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Camerata borrowed 19,000,000 for 10 years at 6%. Average rate of debt was 5.5% What rate of interest should be used to capitalize borrowing costs under IAS 23.
A. 5.5 B. 6 C. 5.75 D. some other |
B
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In what ways does IASB standard leases IAS 17 differ from US.
A. its less specific than US in terms of defining what constitutes a finance lease B. US requires more professional judgement in accounting for leases than does IAS 17. C. IAS 17 is flexible, allow both capitalization and expensing operating lease costs D. Operating leases are capita led under IAS but are not in US. |
A
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In what ways should operating leases be accounted for under IAS?
A. The lease payments should be capitalized and shown on the bs as an asset B. the lease payments must be expensed as they are incurred C. IAS is flexible, allowing both capitalization and expensing of op lease costs D. The lesee capitalizes the op lease and the lessor expenses the lease. |
B
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Which of the following is true about the IASB standards of cash flow?
A. cash flow statements are not required under IASB B. operating cash flow must be determined using direct method C. operating cash flows may be combined with financing cash flows D. IAS 7 requires basically the same info in the cash flow statement as US |
D
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Under IAS 17, in a sale leaseback transaction, how must the initial owner dream any gain?
A. defer it and amortize it into income over the life of the lease. B. recognize it in income immediately. C. defer it until the end of the lease term, including extensions. D. he she can either defer it or recognize it in come immediately |
A
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Under join exposure draft by IASB AND FASB, what is the most significant proposal?
A. IFRS AND US would have identical quantifiable criteria for lease classification. B. leases would no longer be classified as finance or operating. C. Iease would recognize income immediately at the inception of the lease D. there would be no lease discloure required in the notes to fs |
B
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What is the major difference between IFRS & US relative to discontinued operations?
A. US requires that the after tax gain/loss from operations and the after tax gain/loss on asset disposal be shown as combined item. B US requires the above component to be shown separately. C. IFRS requires A to be shown separately D. IFRS requires segment has separate disclose for discontinued ops |
B
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IFRS 8 Segment Reporting, which is not one of the three criteria for defining an operating segment?
A. an operating segment can't merely be a lessor B. an operating segment is a component of a business that generates revenues C. an operating segment is component of a business whose operating results are regularly reviewed by the COO D. an operating segment has separate financial info available |
A
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Under IAS 40 investment property, gains or losses from revaluation are:
A. recognized in revaluation surplus B. recognized in current income C. not permitted D. recognized either in current income or revaluation surplus at the option of management |
B
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Under IAS 16 PPE subsequent revaluation decreases are:
A. never recognized B. credited to revaluation surplus account C. recognized as an expense on income statement D. first recognized as a reduction in any related revaluation surplus |
D
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Under IAS 10, events after reporting, adjusting events that occur after the bs date are:
A. similar to US B. disclosed in footnote only C. treated as a prior period adjustment D. not disclosed, since they occur after the fact |
A
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How does IAS 34, interim financial reporting, differ from US?
A. US has no guidance for interim reporting B. US takes the position that interim periods are an integral part of the full year C. US IS THE SAME AS IAS D. US requires interim period be projected pro rata for entire year |
B
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According to Sir Bryan, what is the most significant cost of accounting diversity?
A. the time expensed by accountants to create multiple fs conforming to different national standards. B. The cost of the IASB to regulate compliance with many national accounting standards C. The reduction in effectiveness of the international markets for capital D. The resources used by countries in legislating different sets of accounting standards |
C
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From a practical standpoint, what is the goal of account standards harmonization?
A. create one set of standards used throughout the world. B. Reducing the conflict among national accounting standards C. Producing accounting standards that are unique for each country D. forcing compliance with IASB regulations |
B
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De jure harmonization refers to:
A. the process of making accounting practice consistent across countries B. the process of making accounting regulations consistent internationally C. forcing accounting differences to be resolved through jury trials D. eliminating the need to have different accounting methods |
B
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De facto harmonization refers to:
A. the process of making accounting practice consistent across countries B. the process of making accounting regulations consistent internationally. C. forcing accounting differences to be resolved through litigation D. creating one set of accounting standards |
A
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Which of the following statements is true about accounting convergence?
A. Convergence is a synonym for harmonization B. convergence is the opposite of stardization C. convergence unlike harmonization takes place over a period of time D. convergence means developing high quality standards in partnership with national start setters |
D
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Which of the following statements is believed to be true about accounting convergence by proponents of convergence?
A. convergence would decrease feelings of nationalism B. convergence is desirable because there is little difference among capital markets in different counties C. convergence would help raise the quality of accounting practice internationally D. non of the above |
C
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Which of the following items is considered the most significant impediment to account convergence?
A. Nationalism B. lack of accounting knowledge C language differences D. high cost of convergenc |
A
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In addition to IASB, which of the following organizations was considered to be the tow most important in harmonization?
A. fasb B. UN C. NATO D. EU |
D
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The fourth directive issued by EU, deals with which of the following?
A. adoption of the euro as the currency of the euro B. consolidated financial statements C. rules for valuation, fs disclosure, and format D. authority of the EU to pass laws |
C
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The seventh directive of the EU about:
A. adoption of the Euro as currency B. consolidated fs C. rules for valuation, fs disclosure, and format. D. authority of the EU to pass laws |
B
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The early harmonization efforts of IASB created standards described as a lowest common denominator. What was the effect?
A. the IASC standards accommodated existing accounting practice in various countries B comparability of fs across countries achieved C. it resulted in few companies being in compliance with IASC D. All the above |
A
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The second phase of IASC efforts to harmonize accounting standards was aimed at what goal?
A. making international accounting more flexible B. creating a greater financial statement comparability across countries C adding new alternatives for accountant practice desired by international community D. strengthening the enforcement of IASC |
B
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What basis does the IASB use in formulating IFRS?
A. Detailed fules to govern accounting practice B. a framework of accounting principles C. typical tax laws of western nations D. exceptions or unusual circumstances that require special attention |
B
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Why does IASB believe that a principles based approach to standard setting is superior to rules based?
A detailed prescription or rules encourage accountants to look for ways to circumvent the rules rather than trying to provide useful info. B. principles based standard setting is less costly to undertake than rules based C. it is desirable to have all corps in all countries to use the same accounting practice D. a conceptual framework for standard setting has been demonstrated to encourage the greatest economic development |
A
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Which of the following statement is true about IASB approach to accounting standard setting?
A. they use a approach similar to rules oriented basis favored by FASB. B. they use a principles based approach C. they pronouncement have been called a cookbook of accounting standards D. Sox requires FASB to move towards the approach for standard seeing by the IASB |
B
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The IASB framework for preparation and presentation of fs establishes:
A. the required practices that should be followed by accountants in preparing fs B. the structure, content, and format of fs C. sanction for failure to comply with the IASB standards D. the concepts to be used in formulating international accounting standards |
D
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the IASB framework for preparation and presentation of fs implies that most important group of users:
A. government B. general public C. creditors D. investors |
D
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Accoring to the framework, what is the definition of income?
A. assets minus liabilities B. revenues minus expenses C. Increase in equity (other than contributions) D. Inflow of resources with future economic benefits |
C
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In Nov 2007, which organization removed the requirement that foreign private issuers reconcile their fs to GAAP?
A. IASB B. EU C. SEC D. FASB |
C
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What group is responsible for translating IFRS into languages other than the official language of IASB?
A. IASB B. IASCF C. UN D. The national accountancy bodies of individual countries |
D
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The IFRS has been translated into how many languages?
A. Non B. more than 30 C. More than 100 D. Six |
B
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What is the Norwalk Agreement?
A. a pledge between FASB and IASB to make their reporting standards compatible. B. A concession by FASB to adopt IFRS asap C. It is a treaty between us and eu to make their accounting standards converge. D. it was an agreement signed in norwalk, to make English official language of Iasb. |
A
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What is the role of the liaison members of the IASB?
A. to facilitate info exchange and cooperation between FASB AND IASB B. to eliminate the political influences on the IASB and national accounting bodies C. To enforce adherence to fundamental principles of IASB D. all the ablove |
A
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What is the intent of IFRS 1?
A. to establish guidelines for fs presentation B. to provide the working definition of accounting elements C. it gives guidance to first time adopters of IFRS issued by IASB D. to provide the framework for setting international accounting standards |
C
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What is the primary focus of IAS 1?
A. To establish the guidelines for financial statement presentations. B. provide guidance to first time adopters of IFRS issued by IASB C. Establish the framework that is to guide the IASB in setting accounting standards D. None of the above |
A
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What is anglo american accounting?
A. It is an association of british and american accounting regulatory agencies B. the accounting systems used in the us, uk and other english speak countries C. this refers to the basis used by the ISAB to judge the appropriateness of international accounting standards. D. All of the above |
b
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Which of the following statements is NOT true about anglo-american accounting?
A. there is a strong reliance on professional judgement B. financial reporting focuses on the firm with an investor orientation C. There is a strong emphasis on measurement of taxable income D. Audits reports on the adherence to the principle of fair presentation |
C
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Which of the following statement is NOT true about anglo-american accounting?
A. There is a strong reliance on professional judgement B. there is a agreement on the interpretation of the principle of fair presentation. C. there is a stronger emphasis on substance of reports rather than form of reports D. audits report on the adherence to the principle of fair presentation |
B
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Which of the following is a difference among us and other ango-american countries in terms of accounting standards?
A. the us does not adhere to the "true and fair view" approach B. the us is more private sector oriented C. the us always follows conceptual framework when developing accounting standards D. Standards are becoming more rigid than uk standards |
D
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Which of the following terms describe the qualitative characteristic of information usefulness?
A. relevance B. understanability C. represetntational faithfulness D. all of the above |
D
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In which of the following countries is the use of IFRS not allowed for domestic companies listed on its stock exchange?
A. UK B. Yugoslavia C. Austria D. United States |
D
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What is the equivalent of US balance sheet common stock on the balance sheet of a british company?
A. capital redemption reserve B. share premium account C. own shares held D. called up share capital |
D
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Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems?
A. commercial and accounting law B. rules and regulations C. written law and unwritten law D. common and code law |
D
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What is likely to be source of accounting standards in common law countries?
A. Tax law B. Non-govt entities such as FASB C. Federal and local legislatures D. IASB |
B
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When accounting rules are left up to professional associations rather than begin legislated by governmental bodies, what is the likely result?
A. Very general accounting rules are created, as in code law countries. B. Very detailed rules for practice are created, as in common law countries. C. Very general accounting rules are created, as in common law countries. D. Very detailed rules for practice are created, as in code law countries. |
B
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In code law countries such as Germany, France, and Japan, tax law and accounting standards tend to be:
A. unrelated B. very different C. similar D. more confusing than those in the U.S. |
C
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Historical cost is the primary basis for asset valuation under US GAAP. Why is historical cost NOT as important in the accounting systems in Latin America as in the US?
A. Historical costs are too difficult to calculate in the currencies used in Central and South America. B. The countries of Latin America have experienced very high rates of inflation, which would make historical costs meaningless to readers of financial statements. C. There is very little foreign direct investment in the countries of Latin America, so few assets need to be accounted for. D. In Latin America, asset prices are very stable, making historical costs equal to replacement costs, so it doesn't matter which valuation basis is used. |
B
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A cultural emphasis on values of performance and achievement rather than values of relationships, caring, and nurturing is referred to as:
A. Uncertainty avoidane B. Masculinity C. Individualism D. Power distance |
B
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A cultural preference for accounting systems that rely on compliance with legal requirements is called:
A. Professionalism B. Uniformity C. Statutory Control D. Optimism |
C
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Countries such as the US tend to value self-regulation of accounting. What term is used to define this subculture?
A. Uniformity B. Flexibility C. Conservativism D. Professionalism |
D
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What does "transparency" mean in accounting?
A. an emphasis on confidentiality. B. restricted disclosure of accounting information C. flexibility in the application of accounting standards. D. openness of accounting information |
D
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What term is used to describe accounting standards that encourage risk taking in financial reporting.
A. Optimism B. Conservatism C. Professionalism D. Transparency |
A
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In Gray's framework for accounting system development, the cultural dimensions of individualism, power distance, uncertainty avoidance and masculinity directly affect:
A. accounting systems B. accounting values C. external influences D. institutional consequences |
B
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Individualism, power distance, uncertainty avoidance, and masculinity are examples of:
A. accounting values B. ecological factors C. cultural dimensions D. external forces |
C
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How are the concepts of professionalism, uniformity, conservatism, and secrecy classified in Gray's framework for accounting system development?
A. Accounting values B. Accounting systems C. Institutional consequences D. Cultural dimensions |
A
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According to Gray's framework for accounting system development, which of the following are directly affected by ecological influences, such as geography, demography, and technology?
A. Accounting values B. Accounting systems C. Institutional consequences D. Cultural dimensions |
D
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According to Gray's framework for accounting system development, the counterpart to the value of secrecy is?
A. Professionalism B. Transparency C. Optimism D. Flexibility |
B
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Doupnk and Salter found that countries tended to cluster in terms of similarities or differences of their accounting systems. These researchers attribute the large cluster around Great Britain to:
A. the superiority of the Anglo accounting model. B. the predominant influence of Great Britain in the world economy. C. the colonial influence of Great Britain on accounting development. D. the fact that more of the world's people speak English than any other language. |
C
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Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting system was related to:
A. a common currency B. the effect of persistent inflation C. the colonial influence of Spain D. the colonial influence of the US |
B
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It is generally believed that the 1997 financial crisis in East Asia was partly due to accounting factors in that part of the world. Which of the following accounting values was lacking in that part of the world, and thereby contributed to the crisis?
A. Professionalism B. Statutory control C. Uniformity D. Transparency |
D
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The term Class A accounting as it is used by the research refers to:
A. preferred accounting systems B. the most efficient accounting systems C. accounting systems that primarily serve external shareholders. D. Accounting systems that ware developed primarily for creditors and taxing authorities. |
C
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The term Class B Accounting as it is used by the researcher refers to:
A. less preferred accounting systems B. less efficient accounting systems C. accounting systems that primarily serve external shareholders. D. accounting systems that were developed primarily for creditors and taxing authorities. |
D
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Which FS is provided by virtually all corps worldwide?
A. Cash Flows B. Changes in Financial Position C. Balance Sheet D. Changes in Non-current Assets |
C
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Which of the following statements in NOT universally included in annual reports worldwide?
A. Balance Sheet B. Cash Flow C. Income Statement D. All of the above |
B
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International accounting diversity can be found in terms of:
A. terminology used in financial statements B. the amount of information disclosed in the FS C. the order of items in the FS D. All the above |
D
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What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?
A. Historical cost B. Net realizable value C. Fair value D. Net present value |
C
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Under US GAAP, fixed assets are generally reported on the balance sheet at their:
A. historical cost B. Net realizable value C. Fair Value D. Market Value |
A
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IFRS allows for which two method for valuing PPE?
A. Historical cost and general purchasing power. B. Historic cost and fair value C. Fair value and general purchasing power D. Fair value and inflation-adjusted |
B
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In terms of level of detail provided in the individual FS, the US tends to:
A. emphasize more line items on the face of the FS B. rely less on footnote disclosure C. Condense the amount of line and supplement with more footnote detail. D. Use footnotes only when absolutely required by GAAp |
C
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In some countries, financial accounting and tax accounting are so closely related that there is very little need to account for deferred income taxes. Of the countries listed below, which as a financial accounting system that is most different from its tax laws?
A. US B. Japan C. Germany D. France |
A
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The Fair Presentation/ Full Disclosure Model is a classification scheme used by:
A. Germany B. Japan C. the US and UK D. Brazil |
C
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