Question 1

The 1993 study by Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting systems was related to:

Accepted Answer

A) a common currency. 
B) the effect of persistent inflation. 
C) the colonial influence of Spain. 
D) the colonial influence of the United States of America. 
A) a common currency. 
B) the effect of persistent inflation. 
C) the colonial influence of Spain. 
D) the colonial influence of the United States of America. B

Question 2

In their 1993 paper,Doupnik and Salter found that countries tended to cluster in terms of the similarities or differences of their accounting systems. These researchers attribute the large cluster around Great Britain to:

Accepted Answer

A) the superiority of the Anglo accounting model. 
B) the predominant influence of Great Britain in the world economy. 
C) the colonial influence of Great Britain on accounting development. 
D) the fact that more of the world's people speak English than any other language. 
A) the superiority of the Anglo accounting model. 
B) the predominant influence of Great Britain in the world economy. 
C) the colonial influence of Great Britain on accounting development. 
D) the fact that more of the world's people speak English than any other language. C

Question 3

Which of the following statements is NOT universally included in annual reports worldwide?

Accepted Answer

A) Balance Sheet 
B) Cash Flow Statement 
C) Income Statement 
D) All of the above statements are included in annual reports worldwide. 
A) Balance Sheet 
B) Cash Flow Statement 
C) Income Statement 
D) All of the above statements are included in annual reports worldwide. B

Question 4

The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Accepted Answer

A) Germany 
B) Japan 
C) the United States and the United Kingdom 
D) Brazil 
A) Germany 
B) Japan 
C) the United States and the United Kingdom 
D) Brazil

Question 5

Optimism is a value of accounting standards that would most likely be found in which country?

Accepted Answer

A) Japan 
B) Australia 
C) Mexico 
D) Brazil 
A) Japan 
B) Australia 
C) Mexico 
D) Brazil

Question 6

In the United States,conformity between financial statement presentation and tax treatment is required only for:

Accepted Answer

A) goodwill. 
B) depreciation. 
C) gains or losses on securities. 
D) the use of the LIFO inventory cost flow assumption. 
A) goodwill. 
B) depreciation. 
C) gains or losses on securities. 
D) the use of the LIFO inventory cost flow assumption.

Question 7

How are the concepts of professionalism,uniformity,conservatism,and secrecy classified in Gray's framework for accounting system development?

Accepted Answer

A) Accounting values 
B) Accounting systems 
C) Institutional consequences 
D) Cultural dimensions 
A) Accounting values 
B) Accounting systems 
C) Institutional consequences 
D) Cultural dimensions

Question 8

Under U.S.GAAP,fixed assets are generally reported on the balance sheet at their:

Accepted Answer

A) historical cost. 
B) net realizable value. 
C) fair value. 
D) market value. 
A) historical cost. 
B) net realizable value. 
C) fair value. 
D) market value.

Question 9

According to Gray's framework for accounting system development,the counterpart to (i.e.opposite of)the value of "secrecy" is:

Accepted Answer

A) professionalism. 
B) transparency. 
C) optimism. 
D) flexibility. 
A) professionalism. 
B) transparency. 
C) optimism. 
D) flexibility.

Question 10

What does "transparency" mean in accounting?

Accepted Answer

A) An emphasis on confidentiality 
B) Restricted disclosure of accounting information 
C) Flexibility in the application of accounting standards 
D) Openness of accounting information 
A) An emphasis on confidentiality 
B) Restricted disclosure of accounting information 
C) Flexibility in the application of accounting standards 
D) Openness of accounting information

Question 11

Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems?

Accepted Answer

A) commercial law and accounting law 
B) rules and regulations 
C) written law and unwritten law 
D) common law and code law 
A) commercial law and accounting law 
B) rules and regulations 
C) written law and unwritten law 
D) common law and code law

Question 12

Which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

Accepted Answer

A) Germany 
B) Switzerland 
C) United Kingdom 
D) Saudi Arabia 
A) Germany 
B) Switzerland 
C) United Kingdom 
D) Saudi Arabia

Question 13

What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?

Accepted Answer

A) Historical cost 
B) Net realizable value 
C) Fair value 
D) Net present value 
A) Historical cost 
B) Net realizable value 
C) Fair value 
D) Net present value

Question 14

Which country includes a social report in the notes to financial statements?

Accepted Answer

A) Japan 
B) Israel 
C) Brazil 
D) Germany 
A) Japan 
B) Israel 
C) Brazil 
D) Germany

Question 15

What is likely to be the source of accounting standards in common law countries?

Accepted Answer

A) Tax law 
B) Non-government entities such as the FASB 
C) Federal and local legislatures 
D) The International Accounting Standards Board 
A) Tax law 
B) Non-government entities such as the FASB 
C) Federal and local legislatures 
D) The International Accounting Standards Board

Question 16

A cultural preference for accounting systems that rely on compliance with legal requirements is called:

Accepted Answer

A) Professionalism. 
B) Uniformity. 
C) Statutory control. 
D) Optimism. 
A) Professionalism. 
B) Uniformity. 
C) Statutory control. 
D) Optimism.

Question 17

In terms of level of detail provided in the individual financial statements,the U.S.tends to:

Accepted Answer

A) emphasize more line items on the face of the financial statements. 
B) rely less on footnote disclosure. 
C) condense the amount of line items and supplement with more footnote detail. 
D) use footnotes only when absolutely required by GAAP. 
A) emphasize more line items on the face of the financial statements. 
B) rely less on footnote disclosure. 
C) condense the amount of line items and supplement with more footnote detail. 
D) use footnotes only when absolutely required by GAAP.

Question 18

What does "harmonization" mean in the context of international accounting?

Accepted Answer

A) The process of combining the financial statements of foreign subsidiaries into the parent company's financial statements 
B) Reducing the diversity of accounting standards 
C) Disclosing the accounting methods used in preparing the financial statements 
D) Assessing the exposure resulting from inadequate internal controls 
A) The process of combining the financial statements of foreign subsidiaries into the parent company's financial statements 
B) Reducing the diversity of accounting standards 
C) Disclosing the accounting methods used in preparing the financial statements 
D) Assessing the exposure resulting from inadequate internal controls

Question 19

When accounting rules are left up to professional associations rather than being legislated by governmental bodies,what is the likely result?

Accepted Answer

A) Very general accounting rules are created,as in code law countries. 
B) Very detailed rules for practice are created,as in common law countries. 
C) Very general accounting rules are created,as in common law countries. 
D) Very detailed rules for practice are created,as in code law countries. 
A) Very general accounting rules are created,as in code law countries. 
B) Very detailed rules for practice are created,as in common law countries. 
C) Very general accounting rules are created,as in common law countries. 
D) Very detailed rules for practice are created,as in code law countries.

Question 20

Countries such as the U.S.tend to value self-regulation of accounting. What term is used to define this subculture?

Accepted Answer

A) Uniformity 
B) Flexibility 
C) Conservatism 
D) Professionalism 
A) Uniformity 
B) Flexibility 
C) Conservatism 
D) Professionalism

The 1993 study by Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting systems was related to:

In their 1993 paper,Doupnik and Salter found that countries tended to cluster in terms of the similarities or differences of their accounting systems. These researchers attribute the large cluster around Great Britain to:

Which of the following statements is NOT universally included in annual reports worldwide?

The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Optimism is a value of accounting standards that would most likely be found in which country?

In the United States,conformity between financial statement presentation and tax treatment is required only for:

How are the concepts of professionalism,uniformity,conservatism,and secrecy classified in Gray's framework for accounting system development?

Under U.S.GAAP,fixed assets are generally reported on the balance sheet at their:

According to Gray's framework for accounting system development,the counterpart to (i.e.opposite of)the value of "secrecy" is:

What does "transparency" mean in accounting?

Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems?

Which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?

Which country includes a social report in the notes to financial statements?

What is likely to be the source of accounting standards in common law countries?

A cultural preference for accounting systems that rely on compliance with legal requirements is called:

In terms of level of detail provided in the individual financial statements,the U.S.tends to:

What does "harmonization" mean in the context of international accounting?

When accounting rules are left up to professional associations rather than being legislated by governmental bodies,what is the likely result?

Countries such as the U.S.tend to value self-regulation of accounting. What term is used to define this subculture?

Introduction to International Accounting

International Convergence of Financial Reporting

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 2: Worldwide Accounting Diversity

The 1993 study by Doupnik and Salter found that a cluster of Latin American countries indicated that the similarity of their accounting systems was related to:

In their 1993 paper,Doupnik and Salter found that countries tended to cluster in terms of the similarities or differences of their accounting systems. These researchers attribute the large cluster around Great Britain to:

Which of the following statements is NOT universally included in annual reports worldwide?

The "Fair Presentation/Full Disclosure Model" is a classification scheme used by:

Optimism is a value of accounting standards that would most likely be found in which country?

In the United States,conformity between financial statement presentation and tax treatment is required only for:

How are the concepts of professionalism,uniformity,conservatism,and secrecy classified in Gray's framework for accounting system development?

Under U.S.GAAP,fixed assets are generally reported on the balance sheet at their:

According to Gray's framework for accounting system development,the counterpart to (i.e.opposite of)the value of "secrecy" is:

What does "transparency" mean in accounting?

Differences in legal systems used in various countries have been cited as one reason for diversity in accounting practice. What are the major types of legal systems?

Which of the following countries tends to have a relatively high degree of transparency in their companies' financial statements?

What method of fixed asset valuation would most likely be used in countries that regularly experience high rates of inflation?

Which country includes a social report in the notes to financial statements?

What is likely to be the source of accounting standards in common law countries?

A cultural preference for accounting systems that rely on compliance with legal requirements is called:

In terms of level of detail provided in the individual financial statements,the U.S.tends to:

What does "harmonization" mean in the context of international accounting?

When accounting rules are left up to professional associations rather than being legislated by governmental bodies,what is the likely result?

Countries such as the U.S.tend to value self-regulation of accounting. What term is used to define this subculture?

Introduction to International Accounting

International Convergence of Financial Reporting

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