Question 1

Ultimately, it will be the responsibility of the FASB in the U.S.to decide if the advantages of IFRS's outweigh the disadvantages.

Accepted Answer

A) True 
 B)False  False

Question 2

The state of economic development can affect accounting standards.

Accepted Answer

A) True 
 B)False  True

Question 3

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the U.S.?

Accepted Answer

A) 2007 
B) 2009 
C) 2002 
D) 2008 
A) 2007 
B) 2009 
C) 2002 
D) 2008 B

Question 4

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the U.S.?

Accepted Answer

A) FASB 
B) SEC 
C) IASB 
D) AICPA 
A) FASB 
B) SEC 
C) IASB 
D) AICPA

Question 5

Which of the following is a true statement about the terms used on the balance sheet?

Accepted Answer

A) U.S.GAAP requires a standard set of terms on the balance sheet. 
B) IFRS requires a standard set of terms on the balance sheet. 
C) Terminology is consistent across all countries. 
D) Neither IFRS nor U.S.GAAP requires a standard set of terms on the balance sheet. 
A) U.S.GAAP requires a standard set of terms on the balance sheet. 
B) IFRS requires a standard set of terms on the balance sheet. 
C) Terminology is consistent across all countries. 
D) Neither IFRS nor U.S.GAAP requires a standard set of terms on the balance sheet.

Question 6

Which of the following statements is true regarding common law?

Accepted Answer

A) In common law countries, there are generally more statutes written into the laws. 
B) In common law countries, there is less reliance on interpretation by the courts. 
C) Because more details are written into U.S.law, FASB has shorter and more general accounting standards than most countries. 
D) The common law system has its roots in the United Kingdom. 
A) In common law countries, there are generally more statutes written into the laws. 
B) In common law countries, there is less reliance on interpretation by the courts. 
C) Because more details are written into U.S.law, FASB has shorter and more general accounting standards than most countries. 
D) The common law system has its roots in the United Kingdom.

Question 7

Which of the following presents the proper ordering of assets, liabilities and equities on the statement of financial position used by some countries that is different from the U.S.?

Accepted Answer

A) current assets, long-term assets, current liabilities 
B) inventories, trade-receivables, cash 
C) assets, liabilities, equities 
D) current liabilities, long-term liabilities, equities 
A) current assets, long-term assets, current liabilities 
B) inventories, trade-receivables, cash 
C) assets, liabilities, equities 
D) current liabilities, long-term liabilities, equities

Question 8

Which of the following inventory costing methods is prohibited under IFRS?

Accepted Answer

A) FIFO 
B) Weighted-average 
C) LIFO 
D) Perpetual 
A) FIFO 
B) Weighted-average 
C) LIFO 
D) Perpetual

Question 9

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities, while IFRS does not.

Accepted Answer

A) True 
 B)False

Question 10

Both U.S.GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as extraordinary and present them in a separate section of the income statement.

Accepted Answer

A) True 
 B)False

Question 11

In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders and that reported to the taxing authorities exist than in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Capital Stock in the U.S.is:

Accepted Answer

A) Share Capital 
B) Capital Reserves 
C) Provisions for other Risks 
D) Deferred Income 
A) Share Capital 
B) Capital Reserves 
C) Provisions for other Risks 
D) Deferred Income

Question 13

There is a standard format in various countries for the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 14

On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?

Accepted Answer

A) Low end of the range. 
B) High end of the range. 
C) Midpoint of the range. 
D) IFRS presents no specific guidance as to this point. 
A) Low end of the range. 
B) High end of the range. 
C) Midpoint of the range. 
D) IFRS presents no specific guidance as to this point.

Question 15

All of the following statements are true about inflation except:

Accepted Answer

A) The U.S.and Germany adjust their financial statements for inflation. 
B) In recent years, inflation has been more rampant in Latin America and South America than the rest of the world. 
C) The FASB developed rules for companies in the United States to use to adjust for inflation. 
D) U.S.companies no longer present financial information adjusted for the effects of inflation. 
A) The U.S.and Germany adjust their financial statements for inflation. 
B) In recent years, inflation has been more rampant in Latin America and South America than the rest of the world. 
C) The FASB developed rules for companies in the United States to use to adjust for inflation. 
D) U.S.companies no longer present financial information adjusted for the effects of inflation.

Question 16

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

Accepted Answer

A) True 
 B)False

Question 17

According to the text, in economies like those that made up the former Soviet Union, accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following countries do not use a common law system?

Accepted Answer

A) The United States 
B) Germany 
C) The United Kingdom 
D) Both a and c are correct. 
A) The United States 
B) Germany 
C) The United Kingdom 
D) Both a and c are correct.

Question 19

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Contingent Liabilities in the U.S.is:

Accepted Answer

A) Share Capital 
B) Capital Reserves 
C) Provisions for Other Risks 
D) Deferred Income 
A) Share Capital 
B) Capital Reserves 
C) Provisions for Other Risks 
D) Deferred Income

Question 20

All of the following are advantages available to companies if a single set of accounting standards were used except:

Accepted Answer

A) A single set of worldwide accounting standards would have no effect on accounting fee costs. 
B) A single set of standards would make it much easier to decide whether to acquire a foreign company. 
C) A single set of worldwide accounting standards would facilitate comparisons for investment purposes. 
D) A single set of worldwide accounting standards would make it easier to access foreign capital markets 
A) A single set of worldwide accounting standards would have no effect on accounting fee costs. 
B) A single set of standards would make it much easier to decide whether to acquire a foreign company. 
C) A single set of worldwide accounting standards would facilitate comparisons for investment purposes. 
D) A single set of worldwide accounting standards would make it easier to access foreign capital markets

Ultimately, it will be the responsibility of the FASB in the U.S.to decide if the advantages of IFRS's outweigh the disadvantages.

The state of economic development can affect accounting standards.

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the U.S.?

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the U.S.?

Which of the following is a true statement about the terms used on the balance sheet?

Which of the following statements is true regarding common law?

Which of the following presents the proper ordering of assets, liabilities and equities on the statement of financial position used by some countries that is different from the U.S.?

Which of the following inventory costing methods is prohibited under IFRS?

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities, while IFRS does not.

Both U.S.GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as extraordinary and present them in a separate section of the income statement.

In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders and that reported to the taxing authorities exist than in the U.S.

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Capital Stock in the U.S.is:

There is a standard format in various countries for the statement of financial position.

On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?

All of the following statements are true about inflation except:

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

According to the text, in economies like those that made up the former Soviet Union, accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Which of the following countries do not use a common law system?

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Contingent Liabilities in the U.S.is:

All of the following are advantages available to companies if a single set of accounting standards were used except:

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 14: International Financial Reporting Standards

Ultimately, it will be the responsibility of the FASB in the U.S.to decide if the advantages of IFRS's outweigh the disadvantages.

The state of economic development can affect accounting standards.

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the U.S.?

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the U.S.?

Which of the following is a true statement about the terms used on the balance sheet?

Which of the following statements is true regarding common law?

Which of the following presents the proper ordering of assets, liabilities and equities on the statement of financial position used by some countries that is different from the U.S.?

Which of the following inventory costing methods is prohibited under IFRS?

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities, while IFRS does not.

Both U.S.GAAP and IFRS classify gains and losses that are both unusual in nature and infrequent in occurrence as extraordinary and present them in a separate section of the income statement.

In countries, like Japan and much of Europe, fewer differences between the amount of income reported to stockholders and that reported to the taxing authorities exist than in the U.S.

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Capital Stock in the U.S.is:

There is a standard format in various countries for the statement of financial position.

On the reporting of liabilities where a range of values exists as a possible outcome, IFRS requires which of the following points to be recorded as a provision, if the outcome is probable?

All of the following statements are true about inflation except:

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

According to the text, in economies like those that made up the former Soviet Union, accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Which of the following countries do not use a common law system?

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Contingent Liabilities in the U.S.is:

All of the following are advantages available to companies if a single set of accounting standards were used except:

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters