Question 1

Which of the following cultural characteristics is not consistent with communities that prefer information disclosures to be kept to a minimum?

Accepted Answer

A)  Collective, rather than an individualistic approach 
B)  High preference for uncertainty avoidance 
C)  Low power distance 
D)  All of the given options are correct. 
A)  Collective, rather than an individualistic approach 
B)  High preference for uncertainty avoidance 
C)  Low power distance 
D)  All of the given options are correct.

Question 2

Which of the following is not true for the International Accounting Standards and the International Financial Reporting Standards?

Accepted Answer

A)  They are based on the legalistic approach. 
B)  They provide choices in the recognition and measurement of various accounting transactions. 
C)  They incorporate 'uncertainty expressions', such as 'probable', 'significant influence', 'control' and 'substantial'. 
D)  They are based on the concept of presenting a 'true and fair view' of a company's financial reports, where professional accountants are given the right to use their judgment to accomplish this goal. 
A)  They are based on the legalistic approach. 
B)  They provide choices in the recognition and measurement of various accounting transactions. 
C)  They incorporate 'uncertainty expressions', such as 'probable', 'significant influence', 'control' and 'substantial'. 
D)  They are based on the concept of presenting a 'true and fair view' of a company's financial reports, where professional accountants are given the right to use their judgment to accomplish this goal.

Question 3

What is the major difference between Islamic religion and Western accounting practices which would make convergence of accounting standards difficult to achieve in Islamic countries?

Accepted Answer

A)  The Islamic concept that stewardship is to God not the individual. 
B)  Islam prevents debt financing and the payment of interest. 
C)  Fundamental business ethics flow automatically from religious practices rather than from the codes of professional associations. 
D)  The Islamic religion influences how people do business and make decisions. 
A)  The Islamic concept that stewardship is to God not the individual. 
B)  Islam prevents debt financing and the payment of interest. 
C)  Fundamental business ethics flow automatically from religious practices rather than from the codes of professional associations. 
D)  The Islamic religion influences how people do business and make decisions.

Question 4

Which of the following is not a characteristic of the Anglo-American model of financial accounting and its regulation?

Accepted Answer

A)  It has been strongly influenced by professional accounting bodies rather than government 
B)  It emphasises the importance of capital markets as the main source of equity and debt 
C)  Regulation tends to be totally rule-based rather than requiring professional judgement 
D)  It emphasises consideration of substance over legal form 
A)  It has been strongly influenced by professional accounting bodies rather than government 
B)  It emphasises the importance of capital markets as the main source of equity and debt 
C)  Regulation tends to be totally rule-based rather than requiring professional judgement 
D)  It emphasises consideration of substance over legal form

Question 5

Assume that a society is comfortable with ambiguity and the people are adaptable and entrepreneurial.Truth may be relative,though in the immediate social circles there is concern for Truth with a capital T,and rules (but not necessarily laws)abound.Nonetheless,adherence to laws and rules may be flexible to suit the situation and pragmatism is a fact of life.This description shows that this society has a:

Accepted Answer

A)  Weak Uncertainty Avoidance society 
B)  Strong Uncertainty Avoidance society 
C)  Large Power Distance society 
D)  Small Power Distance Society 
A)  Weak Uncertainty Avoidance society 
B)  Strong Uncertainty Avoidance society 
C)  Large Power Distance society 
D)  Small Power Distance Society

Question 6

Which of the following is an influence on the nature of accounting practice in different countries?

Accepted Answer

A)  Accidents in history, such as stock-market crashes 
B)  The strength of the accounting profession 
C)  Religion 
D)  All of the given options are correct. 
A)  Accidents in history, such as stock-market crashes 
B)  The strength of the accounting profession 
C)  Religion 
D)  All of the given options are correct.

Question 7

The reason accounting rules are different in various countries is because of underlying differences in:

Accepted Answer

A)  Culture 
B)  Legal systems 
C)  Financing systems 
D)  All of the given options are correct. 
A)  Culture 
B)  Legal systems 
C)  Financing systems 
D)  All of the given options are correct.

Question 8

Which of the following is not necessarily a benefit of harmonisation and convergence?

Accepted Answer

A)  Increased relevance, functionality and appropriateness for all countries 
B)  Improved understanding and interpretation of financial reports by users in different countries 
C)  Increased comparability and consistency 
D)  Lower preparation costs for companies that have to produce different financial reports in different countries 
A)  Increased relevance, functionality and appropriateness for all countries 
B)  Improved understanding and interpretation of financial reports by users in different countries 
C)  Increased comparability and consistency 
D)  Lower preparation costs for companies that have to produce different financial reports in different countries

Question 9

Which of the following is not considered to be an obstacle in the standardisation of international accounting?

Accepted Answer

A)  International cultural and institutional differences 
B)  The economic implications of adopting a 'new' set of accounting standards 
C)  IASs and IFRSs are strongly Anglo-American influenced 
D)  None of the given options are correct. 
A)  International cultural and institutional differences 
B)  The economic implications of adopting a 'new' set of accounting standards 
C)  IASs and IFRSs are strongly Anglo-American influenced 
D)  None of the given options are correct.

Question 10

From a practical standpoint,what is the goal of accounting standards harmonisation or convergence?

Accepted Answer

A)  Creating one set of standards used throughout the world 
B)  Reducing the conflict among national accounting standards 
C)  Producing accounting standards that are unique for each country 
D)  Forcing compliance with IASB regulations 
A)  Creating one set of standards used throughout the world 
B)  Reducing the conflict among national accounting standards 
C)  Producing accounting standards that are unique for each country 
D)  Forcing compliance with IASB regulations

Question 11

Which of the following of Hofstede's societal value dimensions addresses the dimension of how a society handles inequities among people when they occur?

Accepted Answer

A)  Large versus small power distance 
B)  Individualism versus collectivism 
C)  Strong versus weak uncertainty avoidance 
D)  Masculinity versus femininity 
A)  Large versus small power distance 
B)  Individualism versus collectivism 
C)  Strong versus weak uncertainty avoidance 
D)  Masculinity versus femininity

Question 12

What is the cause of differences between the reporting results by the same company,in two different countries,for the same set of transactions and period?

Accepted Answer

A)  Different underlying economic systems 
B)  Different accounting and reporting standards 
C)  Different accounting policy choice 
D)  All of the given options are correct. 
A)  Different underlying economic systems 
B)  Different accounting and reporting standards 
C)  Different accounting policy choice 
D)  All of the given options are correct.

Question 13

Hofstede (1980)defined culture as:

Accepted Answer

A)  An expression of norms, values and customs which reflect typical behavioural aspects 
B)  A system of individual values, customs and beliefs 
C)  The collective programming of the mind, which distinguishes the members of one human group from another 
D)  A system of societal or collectively-held values 
A)  An expression of norms, values and customs which reflect typical behavioural aspects 
B)  A system of individual values, customs and beliefs 
C)  The collective programming of the mind, which distinguishes the members of one human group from another 
D)  A system of societal or collectively-held values

Which of the following cultural characteristics is not consistent with communities that prefer information disclosures to be kept to a minimum?

Which of the following is not true for the International Accounting Standards and the International Financial Reporting Standards?

What is the major difference between Islamic religion and Western accounting practices which would make convergence of accounting standards difficult to achieve in Islamic countries?

Which of the following is not a characteristic of the Anglo-American model of financial accounting and its regulation?

Which of the following is an influence on the nature of accounting practice in different countries?

The reason accounting rules are different in various countries is because of underlying differences in:

Which of the following is not necessarily a benefit of harmonisation and convergence?

Which of the following is not considered to be an obstacle in the standardisation of international accounting?

From a practical standpoint,what is the goal of accounting standards harmonisation or convergence?

Which of the following of Hofstede's societal value dimensions addresses the dimension of how a society handles inequities among people when they occur?

What is the cause of differences between the reporting results by the same company,in two different countries,for the same set of transactions and period?

Hofstede (1980)defined culture as:

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

Which of the following cultural characteristics is not consistent with communities that prefer information disclosures to be kept to a minimum?

Which of the following is not true for the International Accounting Standards and the International Financial Reporting Standards?

What is the major difference between Islamic religion and Western accounting practices which would make convergence of accounting standards difficult to achieve in Islamic countries?

Which of the following is not a characteristic of the Anglo-American model of financial accounting and its regulation?

Which of the following is an influence on the nature of accounting practice in different countries?

The reason accounting rules are different in various countries is because of underlying differences in:

Which of the following is not necessarily a benefit of harmonisation and convergence?

Which of the following is not considered to be an obstacle in the standardisation of international accounting?

From a practical standpoint,what is the goal of accounting standards harmonisation or convergence?

Which of the following of Hofstede's societal value dimensions addresses the dimension of how a society handles inequities among people when they occur?

What is the cause of differences between the reporting results by the same company,in two different countries,for the same set of transactions and period?

Hofstede (1980)defined culture as:

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