Question 1

From 2005,Australia has adopted the IASB standards for:

Accepted Answer

A)  All the reporting entities 
B)  Multinational enterprises only 
C)  All the entities listed on the stock markets 
D)  All entities that prepare consolidated financial statements 
A)  All the reporting entities 
B)  Multinational enterprises only 
C)  All the entities listed on the stock markets 
D)  All entities that prepare consolidated financial statements A

Question 2

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in terms of individualism and masculinity,the more likely it is to rank highly in terms of:

Accepted Answer

A)  Optimism 
B)  Professionalism 
C)  Uniformity 
D)  Secrecy 
A)  Optimism 
B)  Professionalism 
C)  Uniformity 
D)  Secrecy D

Question 3

The type of business ownership and financing system,and the taxation system,influence the nature of accounting practice in different countries.Which of the following describes the institutional influence more conducive to the increasing scale of globalised business and development of international accounting standards?

Accepted Answer

A)  Outsider systems, where finance is mainly provided by external shareholders, and where the tax system is separate from the accounting system 
B)  Insider systems, where finance is mainly provided by family owners, banks and government, and the tax system dominates the accounting system 
C)  Outsider systems, where finance is mainly provided by family owners, banks and government, and the tax system is separate from the accounting system 
D)  Insider systems, where finance is mainly provided by external shareholders, and where the tax system dominates the accounting system 
A)  Outsider systems, where finance is mainly provided by external shareholders, and where the tax system is separate from the accounting system 
B)  Insider systems, where finance is mainly provided by family owners, banks and government, and the tax system dominates the accounting system 
C)  Outsider systems, where finance is mainly provided by family owners, banks and government, and the tax system is separate from the accounting system 
D)  Insider systems, where finance is mainly provided by external shareholders, and where the tax system dominates the accounting system A

Question 4

According to Gray (1988),the higher a country ranks in terms of individualism and the lower it ranks in terms of uncertainty avoidance and power distance,the more likely it is to rank highly in terms of:

Accepted Answer

A)  Optimism 
B)  Professionalism 
C)  Uniformity 
D)  Transparency 
A)  Optimism 
B)  Professionalism 
C)  Uniformity 
D)  Transparency

Question 5

Which of the following is true of Hofstede's (1980)theory?

Accepted Answer

A)  The theory was developed as part of the cross-cultural psychology literature, and therefore was not directly concerned with accounting. 
B)  It detected four structural elements of culture which strongly affect known behaviour in work situations in organisations and institutions. 
C)  It derived from data collected from a multinational corporation located in more than 50 countries. 
D)  All of the given options are correct. 
A)  The theory was developed as part of the cross-cultural psychology literature, and therefore was not directly concerned with accounting. 
B)  It detected four structural elements of culture which strongly affect known behaviour in work situations in organisations and institutions. 
C)  It derived from data collected from a multinational corporation located in more than 50 countries. 
D)  All of the given options are correct.

Question 6

According to Zarzeski (1996):

Accepted Answer

A)  Entities located in countries classified as relatively more Individualistic and Masculine and relatively lower in terms of Uncertainty Avoidance provide greater levels of disclosure. 
B)  Entities with a relatively higher international profile tend to be more secretive than other entities. 
C)  Entities from continental European countries, such as France and Germany, which have historically tended to rely more heavily on debt financing than, say, Anglo-American companies, have higher levels of disclosure than Anglo-American companies. 
D)  Local enterprises are less likely to disclose information commensurate with the secrecy of their culture than are international enterprises. 
A)  Entities located in countries classified as relatively more Individualistic and Masculine and relatively lower in terms of Uncertainty Avoidance provide greater levels of disclosure. 
B)  Entities with a relatively higher international profile tend to be more secretive than other entities. 
C)  Entities from continental European countries, such as France and Germany, which have historically tended to rely more heavily on debt financing than, say, Anglo-American companies, have higher levels of disclosure than Anglo-American companies. 
D)  Local enterprises are less likely to disclose information commensurate with the secrecy of their culture than are international enterprises.

Question 7

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in individualism,the more likely it is to rank highly in terms of:

Accepted Answer

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

Question 8

The process of adopting international accounting standards in Australia did not include:

Accepted Answer

A)  An initial period of harmonisation where AASB standards were made to be compatible with the IAS's, but with some divergence allowed where appropriate 
B)  A Corporate Law and Economic Reform Program (CLERP) Report, in 1997, outlining the rationale and benefits for Australia of adopting international accounting standards 
C)  A decision by the FRC in 2002 that Australia would adopt accounting standards issued by the IASNB, and no divergence was to be acceptable 
D)  Opposition from the Australian Stock Exchange 
A)  An initial period of harmonisation where AASB standards were made to be compatible with the IAS's, but with some divergence allowed where appropriate 
B)  A Corporate Law and Economic Reform Program (CLERP) Report, in 1997, outlining the rationale and benefits for Australia of adopting international accounting standards 
C)  A decision by the FRC in 2002 that Australia would adopt accounting standards issued by the IASNB, and no divergence was to be acceptable 
D)  Opposition from the Australian Stock Exchange

Question 9

Which of the following of Hofstede's societal value dimensions is associated with societies that maintain a more relaxed atmosphere,in which practice counts more than principles and deviance is more easily tolerated?

Accepted Answer

A)  Weak uncertainty avoidance 
B)  Collectivism 
C)  Small power distance 
D)  Femininity 
A)  Weak uncertainty avoidance 
B)  Collectivism 
C)  Small power distance 
D)  Femininity

Question 10

Australia is classified as a masculine society.This means that:

Accepted Answer

A)  Emotions are not shown much in Australia; people are fairly relaxed and not averse to taking risks. 
B)  Australians are proud of their successes and achievements in life, and the country offers a basis for hiring and promotion decisions in the workplace 
C)  Both managers and employees expect to be consulted, and information is shared frequently. 
D)  In the business world, employees are expected to be self-reliant and to display initiative. 
A)  Emotions are not shown much in Australia; people are fairly relaxed and not averse to taking risks. 
B)  Australians are proud of their successes and achievements in life, and the country offers a basis for hiring and promotion decisions in the workplace 
C)  Both managers and employees expect to be consulted, and information is shared frequently. 
D)  In the business world, employees are expected to be self-reliant and to display initiative.

Question 11

The decision that Australia would adopt international accounting standards issued by the IASB was made by:

Accepted Answer

A)  The Australian Accounting Standards Board 
B)  The Federal Government Treasurer 
C)  The Financial Reporting Council 
D)  The International Accounting Standards Board 
A)  The Australian Accounting Standards Board 
B)  The Federal Government Treasurer 
C)  The Financial Reporting Council 
D)  The International Accounting Standards Board

Question 12

Which of the following is an obstacle that is not unique to international harmonisation of accounting standards?

Accepted Answer

A)  Standards may be opposed due to their negative economic consequences on individuals or groups 
B)  Standards may lack relevance to the recipients that they are imposed upon 
C)  Differences of opinion as to who should have the authority and responsibility of setting accounting standards 
D)  All of the given options are correct. 
A)  Standards may be opposed due to their negative economic consequences on individuals or groups 
B)  Standards may lack relevance to the recipients that they are imposed upon 
C)  Differences of opinion as to who should have the authority and responsibility of setting accounting standards 
D)  All of the given options are correct.

Question 13

According to Nobes (1998),many of the factors that have been suggested as reasons for differences in accounting methods in different countries are inter-related.He divided these into two broad categories.What is one of these broad categories?

Accepted Answer

A)  Cultural factors 
B)  Religious influences 
C)  The political system in place 
D)  The tax system in place 
A)  Cultural factors 
B)  Religious influences 
C)  The political system in place 
D)  The tax system in place

Question 14

Which of the following does not equate with Gray's hypothesised linkages between accounting values and accounting practice?

Accepted Answer

A)  The higher the degree of optimism, as opposed to conservatism, the stronger the ties with traditional measurement practice. 
B)  The higher the degree of uniformity, the lower the extent of professional judgment and the stronger the level of enforcement in applying rules and procedures. 
C)  The higher the degree of secrecy preferred, the lower the amount of disclosure. 
D)  The higher the degree of professionalism, the greater the degree of self-regulation and the lower the need for government intervention. 
A)  The higher the degree of optimism, as opposed to conservatism, the stronger the ties with traditional measurement practice. 
B)  The higher the degree of uniformity, the lower the extent of professional judgment and the stronger the level of enforcement in applying rules and procedures. 
C)  The higher the degree of secrecy preferred, the lower the amount of disclosure. 
D)  The higher the degree of professionalism, the greater the degree of self-regulation and the lower the need for government intervention.

Question 15

Which of the following of Gray's accounting sub-culture values describes a preference for substance over legal form regulation?

Accepted Answer

A)  Professionalism versus statutory control 
B)  Uniformity versus flexibility 
C)  Conservatism versus optimism 
D)  Secrecy versus transparency 
A)  Professionalism versus statutory control 
B)  Uniformity versus flexibility 
C)  Conservatism versus optimism 
D)  Secrecy versus transparency

Question 16

Which of the following does not constitute one of Gray's accounting values in the accounting sub-culture,which he identified after closely considering Hofstede's societal values?

Accepted Answer

A)  Secrecy versus transparency 
B)  Uniformity versus flexibility 
C)  Conservatism versus optimism 
D)  Individualism versus collectivism 
A)  Secrecy versus transparency 
B)  Uniformity versus flexibility 
C)  Conservatism versus optimism 
D)  Individualism versus collectivism

Question 17

Which of the following is not a characteristic of the Continental European model of financial accounting and its regulation?

Accepted Answer

A)  It has been strongly influenced by government and the banking sector. 
B)  It relies on qualitative requirements, such as 'true and fair', rather than accounting rules. 
C)  There is a strong association between accounting methods and the tax rules in place. 
D)  Information tends to be of the nature that protects creditors rather than investors. 
A)  It has been strongly influenced by government and the banking sector. 
B)  It relies on qualitative requirements, such as 'true and fair', rather than accounting rules. 
C)  There is a strong association between accounting methods and the tax rules in place. 
D)  Information tends to be of the nature that protects creditors rather than investors.

Question 18

According to Violet (1983),accounting cannot be considered to be culture-free.Which of the following does not explain what Violet means by this?

Accepted Answer

A)  Accounting is a social institution and, as such, has integrated certain cultural customs and elements within it. 
B)  Accounting is an independent component of culture. 
C)  Accounting is a product of culture, and contributes to the evolution of the culture which employs it. 
D)  Since accounting is culturally determined, other cultural customs, beliefs and institutions influence it. 
A)  Accounting is a social institution and, as such, has integrated certain cultural customs and elements within it. 
B)  Accounting is an independent component of culture. 
C)  Accounting is a product of culture, and contributes to the evolution of the culture which employs it. 
D)  Since accounting is culturally determined, other cultural customs, beliefs and institutions influence it.

Question 19

Which researcher argued that the value systems of accountants are derived from,and related to,societal values,and that these social values are also held by accountants at a sub-culture level,and therefore will impact on the development of national accounting systems over time?

Accepted Answer

A)  Hofstede (1980) 
B)  Gray (1988) 
C)  Mueller (1968) 
D)  Perera (1989) 
A)  Hofstede (1980) 
B)  Gray (1988) 
C)  Mueller (1968) 
D)  Perera (1989)

Question 20

Which of the following is not an objective of the IASB?

Accepted Answer

A)  To develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the world's capital markets and other users to make economic decisions. 
B)  To promote the use and rigorous application of the IASB standards. 
C)  To take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies. 
D)  To provide financial support to countries adopting the IASB standards. 
A)  To develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the world's capital markets and other users to make economic decisions. 
B)  To promote the use and rigorous application of the IASB standards. 
C)  To take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies. 
D)  To provide financial support to countries adopting the IASB standards.

From 2005,Australia has adopted the IASB standards for:

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in terms of individualism and masculinity,the more likely it is to rank highly in terms of:

According to Gray (1988),the higher a country ranks in terms of individualism and the lower it ranks in terms of uncertainty avoidance and power distance,the more likely it is to rank highly in terms of:

Which of the following is true of Hofstede's (1980)theory?

According to Zarzeski (1996):

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in individualism,the more likely it is to rank highly in terms of:

The process of adopting international accounting standards in Australia did not include:

Which of the following of Hofstede's societal value dimensions is associated with societies that maintain a more relaxed atmosphere,in which practice counts more than principles and deviance is more easily tolerated?

Australia is classified as a masculine society.This means that:

The decision that Australia would adopt international accounting standards issued by the IASB was made by:

Which of the following is an obstacle that is not unique to international harmonisation of accounting standards?

According to Nobes (1998),many of the factors that have been suggested as reasons for differences in accounting methods in different countries are inter-related.He divided these into two broad categories.What is one of these broad categories?

Which of the following does not equate with Gray's hypothesised linkages between accounting values and accounting practice?

Which of the following of Gray's accounting sub-culture values describes a preference for substance over legal form regulation?

Which of the following does not constitute one of Gray's accounting values in the accounting sub-culture,which he identified after closely considering Hofstede's societal values?

Which of the following is not a characteristic of the Continental European model of financial accounting and its regulation?

According to Violet (1983),accounting cannot be considered to be culture-free.Which of the following does not explain what Violet means by this?

Which researcher argued that the value systems of accountants are derived from,and related to,societal values,and that these social values are also held by accountants at a sub-culture level,and therefore will impact on the development of national accounting systems over time?

Which of the following is not an objective of the IASB?

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Normative Theories of Accounting: The Case of Conceptual Framework Projects

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

Filters

Exam 4: International Accounting

From 2005,Australia has adopted the IASB standards for:

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in terms of individualism and masculinity,the more likely it is to rank highly in terms of:

According to Gray (1988),the higher a country ranks in terms of individualism and the lower it ranks in terms of uncertainty avoidance and power distance,the more likely it is to rank highly in terms of:

Which of the following is true of Hofstede's (1980)theory?

According to Zarzeski (1996):

According to Gray (1988),the higher a country ranks in terms of uncertainty avoidance and power distance,and the lower it ranks in individualism,the more likely it is to rank highly in terms of:

The process of adopting international accounting standards in Australia did not include:

Which of the following of Hofstede's societal value dimensions is associated with societies that maintain a more relaxed atmosphere,in which practice counts more than principles and deviance is more easily tolerated?

Australia is classified as a masculine society.This means that:

The decision that Australia would adopt international accounting standards issued by the IASB was made by:

Which of the following is an obstacle that is not unique to international harmonisation of accounting standards?

According to Nobes (1998),many of the factors that have been suggested as reasons for differences in accounting methods in different countries are inter-related.He divided these into two broad categories.What is one of these broad categories?

Which of the following does not equate with Gray's hypothesised linkages between accounting values and accounting practice?

Which of the following of Gray's accounting sub-culture values describes a preference for substance over legal form regulation?

Which of the following does not constitute one of Gray's accounting values in the accounting sub-culture,which he identified after closely considering Hofstede's societal values?

Which of the following is not a characteristic of the Continental European model of financial accounting and its regulation?

According to Violet (1983),accounting cannot be considered to be culture-free.Which of the following does not explain what Violet means by this?

Which researcher argued that the value systems of accountants are derived from,and related to,societal values,and that these social values are also held by accountants at a sub-culture level,and therefore will impact on the development of national accounting systems over time?

Which of the following is not an objective of the IASB?

Introduction to Financial Accounting Theory

The Financial Reporting Environment

The Regulation of Financial Accounting

Measurement Issues: Accounting for the Effects of Changing Prices and Market Conditions

Normative Theories of Accounting: The Case of Conceptual Framework Projects

Positive Accounting Theory

Unregulated Corporate Reporting Decisions: Considerations of Systems-Oriented Theories

Extending Corporate Accountability: The Incorporation of Social and Environmental Factors Within External Reporting

Reactions of Capital Markets to Financial Reporting

Reactions of Individuals to Financial Reporting: An Examination of Behavioural Research in Accounting

Critical Perspectives of Accounting

Filters