Question 1

Which of the following is NOT an objective of the International Accounting Standards Board?

Accepted Answer

A) To establish worldwide uniformity of accounting practice 
B) To develop a single set of enforceable global accounting standards 
C) To promote the use and application of global accounting standards 
D) To encourage convergence of national accounting standards and international accounting standards 
A) To establish worldwide uniformity of accounting practice 
B) To develop a single set of enforceable global accounting standards 
C) To promote the use and application of global accounting standards 
D) To encourage convergence of national accounting standards and international accounting standards

Question 2

Which of the following items is considered to be the most significant impediment to accounting convergence?

Accepted Answer

A) Nationalism 
B) Lack of accounting knowledge 
C) Language differences 
D) High cost of convergence 
A) Nationalism 
B) Lack of accounting knowledge 
C) Language differences 
D) High cost of convergence

Question 3

De jure harmonization refers to:

Accepted Answer

A) the process of making accounting practice consistent across countries. 
B) the process of making accounting regulations consistent internationally. 
C) forcing accounting differences to be resolved through jury trials. 
D) eliminating the need to have different accounting methods. 
A) the process of making accounting practice consistent across countries. 
B) the process of making accounting regulations consistent internationally. 
C) forcing accounting differences to be resolved through jury trials. 
D) eliminating the need to have different accounting methods.

Question 4

Of the 16 members of the International Accounting Standards Board (IASB),how many must have experience as auditors?

Accepted Answer

A) 0 
B) 3 
C) 5 
D) 12 
A) 0 
B) 3 
C) 5 
D) 12

Question 5

It has been said that the addition of 10 new members to the European Union in 2004 is likely to significantly change the dynamics within the EU. What was the explanation given for this statement?

Accepted Answer

A) The EU is getting too large to manage effectively. 
B) The members added in 2004 have very different economic traditions than the 15 members that joined before 2004. 
C) The members added in 2004 have more economic power than the members that joined the EU between 1957 and 1995. 
D) The purchasing power of the EU was weakened by the addition of additional members. 
A) The EU is getting too large to manage effectively. 
B) The members added in 2004 have very different economic traditions than the 15 members that joined before 2004. 
C) The members added in 2004 have more economic power than the members that joined the EU between 1957 and 1995. 
D) The purchasing power of the EU was weakened by the addition of additional members.

Question 6

The early (1973-1988)harmonization efforts of the International Accounting Standards Committee (IASC)created standards that have been described as a "lowest common denominator" approach. What was the effect of these first international accounting standards?

Accepted Answer

A) The IASC standards accommodated existing accounting practice in various countries. 
B) Comparability of financial statements across countries was achieved. 
C) It resulted in few companies being in compliance with IASC standards. 
D) All of the above 
A) The IASC standards accommodated existing accounting practice in various countries. 
B) Comparability of financial statements across countries was achieved. 
C) It resulted in few companies being in compliance with IASC standards. 
D) All of the above

Question 7

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)establishes:

Accepted Answer

A) the required practices that should be followed by accountants in preparing financial statements. 
B) the structure,content,and format of financial statements. 
C) sanctions for failure to comply with the IASB standards. 
D) the concepts to be used in formulating international accounting standards. 
A) the required practices that should be followed by accountants in preparing financial statements. 
B) the structure,content,and format of financial statements. 
C) sanctions for failure to comply with the IASB standards. 
D) the concepts to be used in formulating international accounting standards.

Question 8

Who was the first chairman of the International Accounting Standards Board?

Accepted Answer

A) Sir Walter Raleigh 
B) Sir David Tweedie 
C) Sir Paul McCartney 
D) Sir Bryan Carsberg 
A) Sir Walter Raleigh 
B) Sir David Tweedie 
C) Sir Paul McCartney 
D) Sir Bryan Carsberg

Question 9

The IFRS Foundation will normally have as its trustees how many senior partners of international accounting firms?

Accepted Answer

A)  0 
B)  2 
C)  5 
D)  10 
A)  0 
B)  2 
C)  5 
D)  10

Question 10

The "Seventh Directive" issued by the European Commission is a statement to the European Union (EU)members concerning:

Accepted Answer

A) adoption of the Euro as the currency used throughout the EU. 
B) consolidated financial statements. 
C) rules for valuation,financial statement disclosures,and financial statement format. 
D) authority of the European Commission to pass laws. 
A) adoption of the Euro as the currency used throughout the EU. 
B) consolidated financial statements. 
C) rules for valuation,financial statement disclosures,and financial statement format. 
D) authority of the European Commission to pass laws.

Question 11

According to the Norwalk Agreement,the FASB will monitor:

Accepted Answer

A) all IASB projects. 
B) only those projects where they have a level of interest in the topic. 
C) no IASB projects,since the IASB is capable of self-monitoring. 
D) only those projects dealing with internationally complex issues. 
A) all IASB projects. 
B) only those projects where they have a level of interest in the topic. 
C) no IASB projects,since the IASB is capable of self-monitoring. 
D) only those projects dealing with internationally complex issues.

Question 12

Which of the following is not a major concern related to convergence of international accounting standards?

Accepted Answer

A) The complicated nature of particular standards 
B) The tax-driven nature of the national accounting regime 
C) An overload of guidance on the first-time application of IFRS 
D) IFRS language translation difficulties 
A) The complicated nature of particular standards 
B) The tax-driven nature of the national accounting regime 
C) An overload of guidance on the first-time application of IFRS 
D) IFRS language translation difficulties

Question 13

According to the IASB,what is needed for international accounting standards to work effectively?

Accepted Answer

A) Commitment from auditors to resist client pressures 
B) Professional judgment in the public interest on the part of management 
C) Financial statement preparers must produce reports that faithfully represent all transactions 
D) All of the above are conditions for effective standards. 
A) Commitment from auditors to resist client pressures 
B) Professional judgment in the public interest on the part of management 
C) Financial statement preparers must produce reports that faithfully represent all transactions 
D) All of the above are conditions for effective standards.

Which of the following is NOT an objective of the International Accounting Standards Board?

Which of the following items is considered to be the most significant impediment to accounting convergence?

De jure harmonization refers to:

Of the 16 members of the International Accounting Standards Board (IASB),how many must have experience as auditors?

It has been said that the addition of 10 new members to the European Union in 2004 is likely to significantly change the dynamics within the EU. What was the explanation given for this statement?

The early (1973-1988)harmonization efforts of the International Accounting Standards Committee (IASC)created standards that have been described as a "lowest common denominator" approach. What was the effect of these first international accounting standards?

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)establishes:

Who was the first chairman of the International Accounting Standards Board?

The IFRS Foundation will normally have as its trustees how many senior partners of international accounting firms?

The "Seventh Directive" issued by the European Commission is a statement to the European Union (EU)members concerning:

According to the Norwalk Agreement,the FASB will monitor:

Which of the following is not a major concern related to convergence of international accounting standards?

According to the IASB,what is needed for international accounting standards to work effectively?

Introduction to International Accounting

Worldwide Accounting Diversity

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

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 3: International Convergence of Financial Reporting

Which of the following is NOT an objective of the International Accounting Standards Board?

Which of the following items is considered to be the most significant impediment to accounting convergence?

De jure harmonization refers to:

Of the 16 members of the International Accounting Standards Board (IASB),how many must have experience as auditors?

It has been said that the addition of 10 new members to the European Union in 2004 is likely to significantly change the dynamics within the EU. What was the explanation given for this statement?

The early (1973-1988)harmonization efforts of the International Accounting Standards Committee (IASC)created standards that have been described as a "lowest common denominator" approach. What was the effect of these first international accounting standards?

The IASB's Framework for Preparation and Presentation of Financial Statements (1989)establishes:

Who was the first chairman of the International Accounting Standards Board?

The IFRS Foundation will normally have as its trustees how many senior partners of international accounting firms?

The "Seventh Directive" issued by the European Commission is a statement to the European Union (EU)members concerning:

According to the Norwalk Agreement,the FASB will monitor:

Which of the following is not a major concern related to convergence of international accounting standards?

According to the IASB,what is needed for international accounting standards to work effectively?

Introduction to International Accounting

Worldwide Accounting Diversity

International Financial Reporting Standards: Part I

International Financial Reporting Standards: Part II

Comparative Accounting

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