Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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  False

Question 3

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 C

Question 4

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 5

Which of the following statements is false regarding U.S. GAAP versus IFRS financial statement presentation?

Accepted Answer

A)  U.S. GAAP does not require the presentation of a classified balance sheet. 
B)  IFRS requires the classification of assets and liabilities as current and noncurrent. 
C)  If a range of values is available for reporting an outcome in a loss contingency, U.S. GAAP requires a company to report the high end of the range as a probable outcome. 
D)  If a range of values is available for reporting an outcome in a loss contingency, IFRS requires a company to record the mid-point of the range as a probable outcome. 
A)  U.S. GAAP does not require the presentation of a classified balance sheet. 
B)  IFRS requires the classification of assets and liabilities as current and noncurrent. 
C)  If a range of values is available for reporting an outcome in a loss contingency, U.S. GAAP requires a company to report the high end of the range as a probable outcome. 
D)  If a range of values is available for reporting an outcome in a loss contingency, IFRS requires a company to record the mid-point of the range as a probable outcome.

Question 6

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 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

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 9

When did the SEC drop its long-standing rule that required foreign companies that filed financial statements with it to adjust those statements to conform with U.S. GAAP and allow them to use IFRS?

Accepted Answer

A)  2001 
B)  2007 
C)  2009 
D)  2013 
A)  2001 
B)  2007 
C)  2009 
D)  2013

Question 10

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 11

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 12

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 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

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

Accepted Answer

The two primary legal systems used aroun

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

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 17

Discuss at least four reasons that accounting standards currently differ between countries.

Accepted Answer

Accounting standards currently differ be

Question 18

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

Question 19

How would you describe the current role of the IASB in setting accounting standards?

Accepted Answer

The IASB is the leader in the developmen

Question 20

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

Accepted Answer

A) True 
 B)False

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

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.

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

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

Which of the following statements is false regarding U.S. GAAP versus IFRS financial statement presentation?

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

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.

Which of the following statements is true regarding common law?

When did the SEC drop its long-standing rule that required foreign companies that filed financial statements with it to adjust those statements to conform with U.S. GAAP and allow them to use IFRS?

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

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

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.

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

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

All of the following statements are true about inflation except:

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.

Discuss at least four reasons that accounting standards currently differ between countries.

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

How would you describe the current role of the IASB in setting accounting standards?

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

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

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

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.

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

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

Which of the following statements is false regarding U.S. GAAP versus IFRS financial statement presentation?

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

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.

Which of the following statements is true regarding common law?

When did the SEC drop its long-standing rule that required foreign companies that filed financial statements with it to adjust those statements to conform with U.S. GAAP and allow them to use IFRS?

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

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

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.

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

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

All of the following statements are true about inflation except:

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.

Discuss at least four reasons that accounting standards currently differ between countries.

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

How would you describe the current role of the IASB in setting accounting standards?

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

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