Question 1

Which of the following statements is NOT true about Anglo-Saxon Accounting?

Accepted Answer

A)  There is a strong reliance on professional judgment. 
B)  Financial reporting focuses on the firm with an investor orientation. 
C)  There is a strong emphasis on measurement of taxable income. 
D)  Principle of fair presentation is predominant in financial reporting. 
A)  There is a strong reliance on professional judgment. 
B)  Financial reporting focuses on the firm with an investor orientation. 
C)  There is a strong emphasis on measurement of taxable income. 
D)  Principle of fair presentation is predominant in financial reporting. C

Question 2

What is the primary focus of IAS 1?

Accepted Answer

A)  To establish the guidelines for financial statement presentation 
B)  To provide guidance to first-time adopters of IFRS issued by the IASB 
C)  To establish the framework of guidelines to be used by IASB in setting accounting standards 
D)  None of the above 
A)  To establish the guidelines for financial statement presentation 
B)  To provide guidance to first-time adopters of IFRS issued by the IASB 
C)  To establish the framework of guidelines to be used by IASB in setting accounting standards 
D)  None of the above A

Question 3

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 A

Question 4

What basis does the International Accounting Standards Board use in developing IFRS?

Accepted Answer

A)  Detailed rules to govern accounting practice 
B)  A framework for deriving general principles 
C)  Typical tax laws of western nations 
D)  Exceptions or unusual circumstances that require special attention 
A)  Detailed rules to govern accounting practice 
B)  A framework for deriving general principles 
C)  Typical tax laws of western nations 
D)  Exceptions or unusual circumstances that require special attention

Question 5

Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

Accepted Answer

A)  The U.S. does not adhere to the "true and fair view" approach. 
B)  The U.S. is more private sector-oriented. 
C)  The U.S. always follows a conceptual framework when developing accounting standards. 
D)  The U.S. standards are becoming more rigid than the U.K. standards. 
A)  The U.S. does not adhere to the "true and fair view" approach. 
B)  The U.S. is more private sector-oriented. 
C)  The U.S. always follows a conceptual framework when developing accounting standards. 
D)  The U.S. standards are becoming more rigid than the U.K. standards.

Question 6

What was the "Norwalk Agreement?"

Accepted Answer

A)  A pledge between the Financial Accounting Standards Board in the U.S. and the IASB to make their reporting standards compatible. 
B)  A concession by the Financial Accounting Standards Board in the U.S. to adopt IFRS as soon as possible. 
C)  It is a treaty between the United States and the European Union to make their accounting standards converge. 
D)  It was an agreement signed in Norwalk, Connecticut in 2002 to make English the official language of the IASB. 
A)  A pledge between the Financial Accounting Standards Board in the U.S. and the IASB to make their reporting standards compatible. 
B)  A concession by the Financial Accounting Standards Board in the U.S. to adopt IFRS as soon as possible. 
C)  It is a treaty between the United States and the European Union to make their accounting standards converge. 
D)  It was an agreement signed in Norwalk, Connecticut in 2002 to make English the official language of the IASB.

Question 7

Which of the following statements is NOT true about Anglo-Saxon Accounting?

Accepted Answer

A)  There is a strong reliance on professional judgment. 
B)  There is an agreement on the interpretation of the principle of fair presentation. 
C)  There is a stronger emphasis on substance of reports rather than the form of reports. 
D)  Audits report on the adherence to the principle of fair presentation. 
A)  There is a strong reliance on professional judgment. 
B)  There is an agreement on the interpretation of the principle of fair presentation. 
C)  There is a stronger emphasis on substance of reports rather than the form of reports. 
D)  Audits report on the adherence to the principle of fair presentation.

Question 8

In which of the following countries is the use of IFRS NOT allowed for domestic companies listed on its stock exchanges?

Accepted Answer

A)  United Kingdom 
B)  Yugoslavia 
C)  Australia 
D)  United States 
A)  United Kingdom 
B)  Yugoslavia 
C)  Australia 
D)  United States

Question 9

Harmonization of accounting standards:

Accepted Answer

A)  is the same as convergence of accounting standards. 
B)  always ensures resulting of comparable financial statements internationally. 
C)  forces accounting differences to be resolved through litigation. 
D)  refers to the reduction of alternatives while retaining a high degree of flexibility in accounting practices. 
A)  is the same as convergence of accounting standards. 
B)  always ensures resulting of comparable financial statements internationally. 
C)  forces accounting differences to be resolved through litigation. 
D)  refers to the reduction of alternatives while retaining a high degree of flexibility in accounting practices.

Question 10

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

Accepted Answer

A)  Convergence would not affect the feelings of nationalism. 
B)  Convergence is desirable because there is very little difference among capital markets in different countries. 
C)  Convergence would help to raise the quality of accounting practices internationally. 
D)  None of the above statements is true. 
A)  Convergence would not affect the feelings of nationalism. 
B)  Convergence is desirable because there is very little difference among capital markets in different countries. 
C)  Convergence would help to raise the quality of accounting practices internationally. 
D)  None of the above statements is true.

Question 11

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, what is the definition of income?

Accepted Answer

A)  Assets minus liabilities 
B)  Revenue minus expenses 
C)  Increase in equity (other than from transactions with owners) 
D)  Inflow of resources with future economic benefit 
A)  Assets minus liabilities 
B)  Revenue minus expenses 
C)  Increase in equity (other than from transactions with owners) 
D)  Inflow of resources with future economic benefit

Question 12

What language is used to develop the International Financial Reporting Standards (IFRS)?

Accepted Answer

A)  French 
B)  German 
C)  English 
D)  Spanish 
A)  French 
B)  German 
C)  English 
D)  Spanish

Question 13

Which of the following statements is NOT a way in which a country might adopt IFRS?

Accepted Answer

A)  By requiring all companies in that country to adopt IFRS. 
B)  By permitting foreign companies listed on domestic exchanges to adopt IFRS. 
C)  By force of IASB to adopt of IFRS. 
D)  By requiring domestic companies that list on foreign exchanges to adopt IFRS. 
A)  By requiring all companies in that country to adopt IFRS. 
B)  By permitting foreign companies listed on domestic exchanges to adopt IFRS. 
C)  By force of IASB to adopt of IFRS. 
D)  By requiring domestic companies that list on foreign exchanges to adopt IFRS.

Question 14

Why did the European Commission stop issuing directives related to accounting in 1990?

Accepted Answer

A)  The EU was leaving the formulation of accounting standards up to the IASC. 
B)  The European Commission had finished the task of formulating accounting standards for the European Union. 
C)  Accounting harmonization had been completed. 
D)  The Commission found that its directives were unenforceable. 
A)  The EU was leaving the formulation of accounting standards up to the IASC. 
B)  The European Commission had finished the task of formulating accounting standards for the European Union. 
C)  Accounting harmonization had been completed. 
D)  The Commission found that its directives were unenforceable.

Question 15

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

Accepted Answer

A)  U.S. Financial Accounting Standards Board (FAS
B)  
B)  United Nations (UN) 
C)  North Atlantic Treaty Organization (NATO) 
D)  European Union (EU) 
A)  U.S. Financial Accounting Standards Board (FAS
B)  
B)  United Nations (UN) 
C)  North Atlantic Treaty Organization (NATO) 
D)  European Union (EU)

Question 16

The second phase (1989-1993) of the IASC's efforts to harmonize accounting standards was aimed at:

Accepted Answer

A)  making international accounting standards more flexible. 
B)  creating greater financial statement comparability across countries. 
C)  adding new alternatives for accounting practices desired by the international community. 
D)  strengthening the enforcement power of the IASC. 
A)  making international accounting standards more flexible. 
B)  creating greater financial statement comparability across countries. 
C)  adding new alternatives for accounting practices desired by the international community. 
D)  strengthening the enforcement power of the IASC.

Question 17

From a practical standpoint, what is the goal of accounting standards harmonization?

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 18

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, which of the following is NOT required for asset recognition?

Accepted Answer

A)  Control of the resource 
B)  Ownership of the resource 
C)  Future economic benefits 
D)  Reliable measurement of the cost or value of the resource 
A)  Control of the resource 
B)  Ownership of the resource 
C)  Future economic benefits 
D)  Reliable measurement of the cost or value of the resource

Question 19

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 20

Which of the following statements is true of the International Accounting Standards Board (IASB)?

Accepted Answer

A)  The Board consists of 16 members. 
B)  The Board should contain 6 part-time members. 
C)  At least 13 members of the Board must have experience as auditors. 
D)  All members of the Board should be from a single country. 
A)  The Board consists of 16 members. 
B)  The Board should contain 6 part-time members. 
C)  At least 13 members of the Board must have experience as auditors. 
D)  All members of the Board should be from a single country.

Which of the following statements is NOT true about Anglo-Saxon Accounting?

What is the primary focus of IAS 1?

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

What basis does the International Accounting Standards Board use in developing IFRS?

Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

What was the "Norwalk Agreement?"

Which of the following statements is NOT true about Anglo-Saxon Accounting?

In which of the following countries is the use of IFRS NOT allowed for domestic companies listed on its stock exchanges?

Harmonization of accounting standards:

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, what is the definition of income?

What language is used to develop the International Financial Reporting Standards (IFRS)?

Which of the following statements is NOT a way in which a country might adopt IFRS?

Why did the European Commission stop issuing directives related to accounting in 1990?

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

The second phase (1989-1993) of the IASC's efforts to harmonize accounting standards was aimed at:

From a practical standpoint, what is the goal of accounting standards harmonization?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, which of the following is NOT required for asset recognition?

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

Which of the following statements is true of the International Accounting Standards Board (IASB)?

Introduction to International Accounting

Worldwide Accounting Diversity

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

International Taxation

International Transfer Pricing

Management Accounting Issues in Multinational Corporations

Auditing and Corporate Governance: An International Perspective

International Sustainability Reporting

Filters

Exam 3: International Convergence of Financial Reporting

Which of the following statements is NOT true about Anglo-Saxon Accounting?

What is the primary focus of IAS 1?

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

What basis does the International Accounting Standards Board use in developing IFRS?

Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

What was the "Norwalk Agreement?"

Which of the following statements is NOT true about Anglo-Saxon Accounting?

In which of the following countries is the use of IFRS NOT allowed for domestic companies listed on its stock exchanges?

Harmonization of accounting standards:

Which of the following statements is believed to be true about accounting convergence by proponents of convergence?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, what is the definition of income?

What language is used to develop the International Financial Reporting Standards (IFRS)?

Which of the following statements is NOT a way in which a country might adopt IFRS?

Why did the European Commission stop issuing directives related to accounting in 1990?

In addition to the International Accounting Standards Committee (IASC), which of the following organizations was considered to be one of the two most important forces in efforts to harmonize accounting standards?

The second phase (1989-1993) of the IASC's efforts to harmonize accounting standards was aimed at:

From a practical standpoint, what is the goal of accounting standards harmonization?

According to the Framework for Preparation and Presentation of Financial Statements of the IASB, which of the following is NOT required for asset recognition?

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

Which of the following statements is true of the International Accounting Standards Board (IASB)?

Introduction to International Accounting

Worldwide Accounting Diversity

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

International Taxation

International Transfer Pricing

Management Accounting Issues in Multinational Corporations

Auditing and Corporate Governance: An International Perspective

International Sustainability Reporting

Filters