Question 1

All of the following are among the most important reasons why accounting standards differ around the world except:

Accepted Answer

A) differences in the state of economic development 
B) differences in taxation 
C) differences in inflation 
D) differences in code law in all countries around the world 
A) differences in the state of economic development 
B) differences in taxation 
C) differences in inflation 
D) differences in code law in all countries around the world

Question 2

Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?

Accepted Answer

A) Acquiring foreign companies would become a more confusing proposition. 
B) Corporations may find themselves more susceptible to lawsuits due to the principles-based system. 
C) Time and money would not be saved in accessing capital markets abroad. 
D) The SEC would be dissolved if international accounting standards were adopted. 
A) Acquiring foreign companies would become a more confusing proposition. 
B) Corporations may find themselves more susceptible to lawsuits due to the principles-based system. 
C) Time and money would not be saved in accessing capital markets abroad. 
D) The SEC would be dissolved if international accounting standards were adopted.

Question 3

A single set of accounting standards could help a U.S.company save time and money in the acquisition of a German company.

Accepted Answer

A) True 
 B)False

Question 4

Essentially, the entire statement of financial position is inverted compared to what is commonly seen in the United States.

Accepted Answer

A) True 
 B)False

Question 5

The International Accounting Standards Committee was established in 1973 to develop worldwide standards.Which group replaced it in 2001?

Accepted Answer

A) FASB 
B) IFRS 
C) IASB 
D) IIA 
A) FASB 
B) IFRS 
C) IASB 
D) IIA

Question 6

No single explanation can be given for the divergence of accounting standards.

Accepted Answer

A) True 
 B)False

Question 7

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Accepted Answer

A) True 
 B)False

Question 8

Companies in Mexico had to begin using IFRS by 2012.

Accepted Answer

A) True 
 B)False

Question 9

The U.S.accounting standards are more principle-based than IFRS.

Accepted Answer

A) True 
 B)False

Question 10

When comparing U.S.GAAP and IFRS, regarding the level of details in the standards and the level of disclosure required, which of the following is correct?

Accepted Answer

The answer of When comparing U.S.GAAP and IFRS, regarding the...

Question 11

The group with primary responsibility for development of a single set of accounting standards around the world is the

Accepted Answer

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

Question 12

While U.S.GAAP requires a complete set of financial statements, including a balance sheet, statement of stockholders' equity, income statement, and statement of cash flows, IFRS does not.

Accepted Answer

A) True 
 B)False

Question 13

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

Accepted Answer

A) The Sarbanes-Oxley Act 
B) The Norwalk Agreement 
C) The IFRS Foundation 
D) The Conceptual Framework 
A) The Sarbanes-Oxley Act 
B) The Norwalk Agreement 
C) The IFRS Foundation 
D) The Conceptual Framework

Question 14

What is the name for the balance sheet under international accounting standards?

Accepted Answer

A) Assets and Equity Attributable to Shareholders 
B) Statement of Financial Position 
C) Statement of Balance 
D) The Equitable Claims Statement 
A) Assets and Equity Attributable to Shareholders 
B) Statement of Financial Position 
C) Statement of Balance 
D) The Equitable Claims Statement

Question 15

IFRS is now mandatory in all member states of the economic and political organization known as the European Union.

Accepted Answer

A) True 
 B)False

Question 16

Regarding the valuation of operating assets, IFRS allows companies to use fair value.

Accepted Answer

A) True 
 B)False

Question 17

The benefits of a single set of accounting standards used around the world would include all of the following except:

Accepted Answer

A) They would eventually save companies considerable money in accounting fees. 
B) They would prevent competitors from acquiring each other. 
C) They would allow easier comparisons by analysts and investors. 
D) They would facilitate access to foreign capital markets. 
A) They would eventually save companies considerable money in accounting fees. 
B) They would prevent competitors from acquiring each other. 
C) They would allow easier comparisons by analysts and investors. 
D) They would facilitate access to foreign capital markets.

Question 18

Significant differences exist in terms on financial statements around the world.For example, another name for what we know as Additional Paid-In Capital 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 19

Under IFRS, if inventory is written down to a new lower market value, this cannot be reversed in later periods.

Accepted Answer

A) True 
 B)False

Question 20

When analyzing foreign statements, all of the following are accurate positions of non-current liabilities listings except:

Accepted Answer

A) After current liabilities 
B) Before current liabilities 
C) After share capital 
D) After total equity 
A) After current liabilities 
B) Before current liabilities 
C) After share capital 
D) After total equity

All of the following are among the most important reasons why accounting standards differ around the world except:

Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?

A single set of accounting standards could help a U.S.company save time and money in the acquisition of a German company.

Essentially, the entire statement of financial position is inverted compared to what is commonly seen in the United States.

The International Accounting Standards Committee was established in 1973 to develop worldwide standards.Which group replaced it in 2001?

No single explanation can be given for the divergence of accounting standards.

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Companies in Mexico had to begin using IFRS by 2012.

The U.S.accounting standards are more principle-based than IFRS.

When comparing U.S.GAAP and IFRS, regarding the level of details in the standards and the level of disclosure required, which of the following is correct?

The group with primary responsibility for development of a single set of accounting standards around the world is the

While U.S.GAAP requires a complete set of financial statements, including a balance sheet, statement of stockholders' equity, income statement, and statement of cash flows, IFRS does not.

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

What is the name for the balance sheet under international accounting standards?

IFRS is now mandatory in all member states of the economic and political organization known as the European Union.

Regarding the valuation of operating assets, IFRS allows companies to use fair value.

The benefits of a single set of accounting standards used around the world would include all of the following except:

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

Under IFRS, if inventory is written down to a new lower market value, this cannot be reversed in later periods.

When analyzing foreign statements, all of the following are accurate positions of non-current liabilities listings 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

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Exam 14: International Financial Reporting Standards

All of the following are among the most important reasons why accounting standards differ around the world except:

Which of the following is a commonly cited disadvantage of having a new unified set of accounting standards?

A single set of accounting standards could help a U.S.company save time and money in the acquisition of a German company.

Essentially, the entire statement of financial position is inverted compared to what is commonly seen in the United States.

The International Accounting Standards Committee was established in 1973 to develop worldwide standards.Which group replaced it in 2001?

No single explanation can be given for the divergence of accounting standards.

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Companies in Mexico had to begin using IFRS by 2012.

The U.S.accounting standards are more principle-based than IFRS.

When comparing U.S.GAAP and IFRS, regarding the level of details in the standards and the level of disclosure required, which of the following is correct?

The group with primary responsibility for development of a single set of accounting standards around the world is the

While U.S.GAAP requires a complete set of financial statements, including a balance sheet, statement of stockholders' equity, income statement, and statement of cash flows, IFRS does not.

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

What is the name for the balance sheet under international accounting standards?

IFRS is now mandatory in all member states of the economic and political organization known as the European Union.

Regarding the valuation of operating assets, IFRS allows companies to use fair value.

The benefits of a single set of accounting standards used around the world would include all of the following except:

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

Under IFRS, if inventory is written down to a new lower market value, this cannot be reversed in later periods.

When analyzing foreign statements, all of the following are accurate positions of non-current liabilities listings 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