Question 1

Companies in Mexico had to begin using IFRS by 2012.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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 4

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 5

The cost of Fulton's inventory at the end of the year was $145,000. Due to obsolescence, the cost to replace the inventory was only $90,000. Net realizable value-what the inventory could be sold for-is $102,000.
REQUIRED:
Determine the amount Fulton should report on its year-end balance sheet for inventory assuming the company follows a U.S. GAAP and b IFRS.

Accepted Answer

The amount to be reported on t

Question 6

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 7

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

Question 8

Which of the following statements is true regarding the treatment of leases on the financial statements?

Accepted Answer

A)  U.S. GAAP prohibits the presentation of leases on the financial statements since they are off-balance sheet transactions. 
B)  U.S. GAAP criteria for lease capitalization are less strict than IFRS. 
C)  The criteria concerning whether a lease is a capital lease are very different for IFRS and U.S. GAAP. 
D)  The criteria required for lease capitalization under IFRS are considered more like guidelines rather than strict rules. 
A)  U.S. GAAP prohibits the presentation of leases on the financial statements since they are off-balance sheet transactions. 
B)  U.S. GAAP criteria for lease capitalization are less strict than IFRS. 
C)  The criteria concerning whether a lease is a capital lease are very different for IFRS and U.S. GAAP. 
D)  The criteria required for lease capitalization under IFRS are considered more like guidelines rather than strict rules.

Question 9

All of the following statements are true regarding international legal systems except:

Accepted Answer

A)  The common law system has its roots in the United Kingdom. 
B)  In common law countries, there are generally fewer statutes written into the laws. 
C)  In code law countries, there is more reliance on interpretations by the courts than in common law countries. 
D)  Divergence in accounting standards is linked to differences in legal systems around the world. 
A)  The common law system has its roots in the United Kingdom. 
B)  In common law countries, there are generally fewer statutes written into the laws. 
C)  In code law countries, there is more reliance on interpretations by the courts than in common law countries. 
D)  Divergence in accounting standards is linked to differences in legal systems around the world.

Question 10

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 11

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

Question 12

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...

Question 13

Explain some of the differences in accounting for operating assets that exist between U.S. GAAP and IFRS.

Accepted Answer

Both IFRS and U.S. GAAP require companie

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

Summarize some of the common differences between U.S. GAAP and IFRS.

Accepted Answer

The answer of Summarize some of the common differences between...

Question 17

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 18

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

Companies in Mexico had to begin using IFRS by 2012.

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:

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

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?

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

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

Which of the following statements is true regarding the treatment of leases on the financial statements?

All of the following statements are true regarding international legal systems except:

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

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

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?

Explain some of the differences in accounting for operating assets that exist between U.S. GAAP and IFRS.

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

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:

Summarize some of the common differences between U.S. GAAP and 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.

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

Companies in Mexico had to begin using IFRS by 2012.

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:

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

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?

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

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

Which of the following statements is true regarding the treatment of leases on the financial statements?

All of the following statements are true regarding international legal systems except:

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

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

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?

Explain some of the differences in accounting for operating assets that exist between U.S. GAAP and IFRS.

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

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:

Summarize some of the common differences between U.S. GAAP and 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.

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