Question 1

Which term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization?

Accepted Answer

A) Parent/subsidiary 
B) Hooking up 
C) Guanxi 
D) Principal/Agent 
A) Parent/subsidiary 
B) Hooking up 
C) Guanxi 
D) Principal/Agent

Question 2

While German tax computations are based on financial accounting standards, this is not true in the United Kingdom.Why doesn't the U.K.base its tax code on financial accounting standards?

Accepted Answer

A) The United Kingdom tries to avoid being like Germany whenever it can. 
B) The United Kingdom had a tax code long before it had financial accounting standards. 
C) Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes. 
D) Germany follows the directives of the European Union, whereas the United Kingdom has not adopted the directives of the EU. 
A) The United Kingdom tries to avoid being like Germany whenever it can. 
B) The United Kingdom had a tax code long before it had financial accounting standards. 
C) Financial accounting standards in the United Kingdom are too conservative to be practical for tax purposes. 
D) Germany follows the directives of the European Union, whereas the United Kingdom has not adopted the directives of the EU.

Question 3

Mexico has had a professional association of public accountants since what year?

Accepted Answer

A) 1821 
B) 1917 
C) 1929 
D) 1964 
A) 1821 
B) 1917 
C) 1929 
D) 1964

Question 4

Which of the following represents the primary source of funds for Japanese businesses?

Accepted Answer

A) Government grants 
B) Bank credit and cross-corporate ownership 
C) Corporate bonds 
D) Outside equity financing 
A) Government grants 
B) Bank credit and cross-corporate ownership 
C) Corporate bonds 
D) Outside equity financing

Question 5

Under what circumstance should a German company prepare its financial statements under German GAAP rather than international financial reporting standards?

Accepted Answer

A) Reporting to banks 
B) Reporting consolidated financial statements 
C) Calculating tax 
D) German GAAP should always be used instead of IRFS. 
A) Reporting to banks 
B) Reporting consolidated financial statements 
C) Calculating tax 
D) German GAAP should always be used instead of IRFS.

Question 6

Among the world's nations, where does the People's Republic of China rank in terms of receiving foreign direct investment?

Accepted Answer

A) First 
B) Fourth 
C) Tenth 
D) Fifth 
A) First 
B) Fourth 
C) Tenth 
D) Fifth

Question 7

What is the primary source of finance for German companies?

Accepted Answer

A) Issuance of stock 
B) Corporate bonds 
C) Bank loans 
D) Government grants 
A) Issuance of stock 
B) Corporate bonds 
C) Bank loans 
D) Government grants

Question 8

What is the most important federal agency regulating disclosure by publicly traded companies in Mexico?

Accepted Answer

A) Mexican Institute of Public Accountants (MIP
A)  
B) National Banking and Securities Commission (NBS
C)  
C) Bolsa Mexicana de Valores (BMV) 
D) National Executive Committee (NE
C)  
A) Mexican Institute of Public Accountants (MIP
A)  
B) National Banking and Securities Commission (NBS
C)  
C) Bolsa Mexicana de Valores (BMV) 
D) National Executive Committee (NE
C)

Question 9

What body currently enforces financial accounting requirements in Germany?

Accepted Answer

A) German Accounting Standards Committee 
B) Bundestag 
C) Financial Reporting Enforcement Panel 
D) Financial Accounting Standards Board 
A) German Accounting Standards Committee 
B) Bundestag 
C) Financial Reporting Enforcement Panel 
D) Financial Accounting Standards Board

Question 10

What is the main source of corporate financing in the United Kingdom?

Accepted Answer

A) Banks 
B) Capital markets 
C) Government grants 
D) Royal families 
A) Banks 
B) Capital markets 
C) Government grants 
D) Royal families

Question 11

What is China's policy regarding revaluation of intangible assets?

Accepted Answer

A) It is encouraged. 
B) It is prohibited. 
C) It is permitted only if the asset trades in an active market. 
D) It has offered no guidance on the issue. 
A) It is encouraged. 
B) It is prohibited. 
C) It is permitted only if the asset trades in an active market. 
D) It has offered no guidance on the issue.

Question 12

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

Accepted Answer

A) It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers. 
B) It too closely reflects the views of the masses, which are not considered in establishing accounting standards. 
C) Conservatism has been shown to cause economic hardship for companies operating in China. 
D) Conservatism overstates assets, which is perceived to distort financial results. 
A) It is perceived to manipulate accounting numbers for the benefit of owners by exploiting workers. 
B) It too closely reflects the views of the masses, which are not considered in establishing accounting standards. 
C) Conservatism has been shown to cause economic hardship for companies operating in China. 
D) Conservatism overstates assets, which is perceived to distort financial results.

Question 13

What entity is primarily responsible for setting accounting and financial reporting standards in Mexico?

Accepted Answer

A) Mexican Institute of Public Accountants (MIP
A)  
B) National Banking and Securities Commission (NBS
C)  
C) Bolsa Mexicana de Valores (BMV) 
D) International Accounting Standards Board 
A) Mexican Institute of Public Accountants (MIP
A)  
B) National Banking and Securities Commission (NBS
C)  
C) Bolsa Mexicana de Valores (BMV) 
D) International Accounting Standards Board

Question 14

How is goodwill handled for U.K.GAAP purposes?

Accepted Answer

A) Expensed right away 
B) Capitalized and never amortized 
C) Amortized at the firm's choice 
D) There is no specific requirement. 
A) Expensed right away 
B) Capitalized and never amortized 
C) Amortized at the firm's choice 
D) There is no specific requirement.

Question 15

What reasons have been given by the Institute of Chartered Accountants in England and Wales (ICAEW) for following a principles-based approach in setting accounting standards?

Accepted Answer

A) Lawmakers and standard setters cannot anticipate every situation. 
B) Accountancy profession should be about exercising judgment and integrity. 
C) The profession needs to attract people of high intellect. 
D) All of the above 
A) Lawmakers and standard setters cannot anticipate every situation. 
B) Accountancy profession should be about exercising judgment and integrity. 
C) The profession needs to attract people of high intellect. 
D) All of the above

Question 16

Which of the following statements is true about accounting in China?

Accepted Answer

A) Accounting has a long history, dating back thousands of years. 
B) The first professional accounting body in the People's Republic of China was established in 1988. 
C) Its roots can be found in the teachings of the philosopher and educator Confucius. 
D) All of the above statements are true. 
A) Accounting has a long history, dating back thousands of years. 
B) The first professional accounting body in the People's Republic of China was established in 1988. 
C) Its roots can be found in the teachings of the philosopher and educator Confucius. 
D) All of the above statements are true.

Question 17

Of the following British professional accounting associations, whose members CANNOT sign an audit report?

Accepted Answer

A) Institute of Chartered Accountants in England and Wales (ICAEW) 
B) Association of Chartered Certified Accountants (ACC
A)  
C) Chartered Institute of Public Finance and Accountancy (CIPF
A)  
D) Institute of Chartered Accountants in Scotland (ICAS) 
A) Institute of Chartered Accountants in England and Wales (ICAEW) 
B) Association of Chartered Certified Accountants (ACC
A)  
C) Chartered Institute of Public Finance and Accountancy (CIPF
A)  
D) Institute of Chartered Accountants in Scotland (ICAS)

Question 18

Since the 1980s accounting regulation in the United Kingdom has been legislated more than it had been previously.What is the primary cause for this change from professional self-regulation to government regulation?

Accepted Answer

A) High profile scandals in the British business community 
B) Influence of the United States on the ICAEW 
C) Directives from the European Union 
D) All of the above 
A) High profile scandals in the British business community 
B) Influence of the United States on the ICAEW 
C) Directives from the European Union 
D) All of the above

Question 19

What is meant by Germany's "authoritative principle?"

Accepted Answer

A) The GASB is the final authority for accounting standards. 
B) The International Accounting Standards Board is the authority for making German GAAP. 
C) Financial statements are the basis for determining tax. 
D) Accounting standards are derived from tax law. 
A) The GASB is the final authority for accounting standards. 
B) The International Accounting Standards Board is the authority for making German GAAP. 
C) Financial statements are the basis for determining tax. 
D) Accounting standards are derived from tax law.

Question 20

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976)?

Accepted Answer

A) Over-simplification of accounting was pursued to make it accessible to a broad populace. 
B) There was very little business being transacted in China during the Cultural Revolution. 
C) Businesses in China were converting to international accounting standards during this period of time so they stopped developing new standards. 
D) Auditors took over the development of accounting practice. 
A) Over-simplification of accounting was pursued to make it accessible to a broad populace. 
B) There was very little business being transacted in China during the Cultural Revolution. 
C) Businesses in China were converting to international accounting standards during this period of time so they stopped developing new standards. 
D) Auditors took over the development of accounting practice.

Which term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization?

While German tax computations are based on financial accounting standards, this is not true in the United Kingdom.Why doesn't the U.K.base its tax code on financial accounting standards?

Mexico has had a professional association of public accountants since what year?

Which of the following represents the primary source of funds for Japanese businesses?

Under what circumstance should a German company prepare its financial statements under German GAAP rather than international financial reporting standards?

Among the world's nations, where does the People's Republic of China rank in terms of receiving foreign direct investment?

What is the primary source of finance for German companies?

What is the most important federal agency regulating disclosure by publicly traded companies in Mexico?

What body currently enforces financial accounting requirements in Germany?

What is the main source of corporate financing in the United Kingdom?

What is China's policy regarding revaluation of intangible assets?

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

What entity is primarily responsible for setting accounting and financial reporting standards in Mexico?

How is goodwill handled for U.K.GAAP purposes?

What reasons have been given by the Institute of Chartered Accountants in England and Wales (ICAEW) for following a principles-based approach in setting accounting standards?

Which of the following statements is true about accounting in China?

Of the following British professional accounting associations, whose members CANNOT sign an audit report?

Since the 1980s accounting regulation in the United Kingdom has been legislated more than it had been previously.What is the primary cause for this change from professional self-regulation to government regulation?

What is meant by Germany's "authoritative principle?"

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976)?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters

Exam 6: Comparative Accounting

Which term refers to an affiliate relationship between an accounting/auditing firm and its sponsoring organization?

While German tax computations are based on financial accounting standards, this is not true in the United Kingdom.Why doesn't the U.K.base its tax code on financial accounting standards?

Mexico has had a professional association of public accountants since what year?

Which of the following represents the primary source of funds for Japanese businesses?

Under what circumstance should a German company prepare its financial statements under German GAAP rather than international financial reporting standards?

Among the world's nations, where does the People's Republic of China rank in terms of receiving foreign direct investment?

What is the primary source of finance for German companies?

What is the most important federal agency regulating disclosure by publicly traded companies in Mexico?

What body currently enforces financial accounting requirements in Germany?

What is the main source of corporate financing in the United Kingdom?

What is China's policy regarding revaluation of intangible assets?

Why is accounting conservatism NOT a basic principle underlying accounting standards in the People's Republic of China?

What entity is primarily responsible for setting accounting and financial reporting standards in Mexico?

How is goodwill handled for U.K.GAAP purposes?

What reasons have been given by the Institute of Chartered Accountants in England and Wales (ICAEW) for following a principles-based approach in setting accounting standards?

Which of the following statements is true about accounting in China?

Of the following British professional accounting associations, whose members CANNOT sign an audit report?

Since the 1980s accounting regulation in the United Kingdom has been legislated more than it had been previously.What is the primary cause for this change from professional self-regulation to government regulation?

What is meant by Germany's "authoritative principle?"

What reason is given for the stagnation of accounting development during the "Cultural Revolution" in China (1966-1976)?

Introduction to International Accounting

Worldwide Accounting Diversity

International Convergence of Financial Reporting

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Additional Financial Reporting Issues

Analysis of Foreign Financial Statements

International Taxation

International Transfer Pricing

Strategic Accounting Issues in Multinational Corporations

Comparative International Auditing and Corporate Governance

International Corporate Social Reporting

Filters