Question 1

What is the official language of the IASB?

Accepted Answer

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

Question 2

Which of the following is true of assets?

Accepted Answer

A)  Assets should be recognized only when it is probable that future economic benefits will flow to the enterprise. 
B)  Assets should be recognized when it is probable that an outflow of resources will be required to settle them. 
C)  Asset is defined as decrease in equity, other than from transactions with owners. 
D)  A resource must be owned for it to be recognized an asset of the enterprise. 
A)  Assets should be recognized only when it is probable that future economic benefits will flow to the enterprise. 
B)  Assets should be recognized when it is probable that an outflow of resources will be required to settle them. 
C)  Asset is defined as decrease in equity, other than from transactions with owners. 
D)  A resource must be owned for it to be recognized an asset of the enterprise.

Question 3

The International Accounting Standards Board was preceded by:

Accepted Answer

A)  the IOSCO. 
B)  the ASEAN. 
C)  the IASC. 
D)  the NRC. 
A)  the IOSCO. 
B)  the ASEAN. 
C)  the IASC. 
D)  the NRC.

Question 4

De facto harmonization refers to the process of:

Accepted Answer

A)  making accounting practices consistent across countries. 
B)  making accounting regulations consistent internationally. 
C)  resolving accounting differences through litigation. 
D)  creating one set of accounting standards. 
A)  making accounting practices consistent across countries. 
B)  making accounting regulations consistent internationally. 
C)  resolving accounting differences through litigation. 
D)  creating one set of accounting standards.

Question 5

How many trustees of the IFRS Foundation will normally be senior partners of prominent international accounting firms?

Accepted Answer

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

Question 6

Which of the following statements is true of IFRS 1?

Accepted Answer

A)  It does not permit the recognition of intangible assets in balance sheets. 
B)  After its issuance in July 2001, it has not been amended as of yet. 
C)  It deals primarily with fair value measurement of assets. 
D)  It provides exemptions to complying with IFRS in specific areas. 
A)  It does not permit the recognition of intangible assets in balance sheets. 
B)  After its issuance in July 2001, it has not been amended as of yet. 
C)  It deals primarily with fair value measurement of assets. 
D)  It provides exemptions to complying with IFRS in specific areas.

Question 7

According to the Norwalk Agreement, the FASB will monitor:

Accepted Answer

A)  all IASB projects. 
B)  IASB projects according to their 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)  IASB projects according to their 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 8

What is the intent of IFRS 1?

Accepted Answer

A)  To establish the guidelines for financial statement presentation 
B)  To provide the working definitions of accounting elements 
C)  To provide guidance on first-time application of IFRS 
D)  To provide the framework for setting international accounting standards 
A)  To establish the guidelines for financial statement presentation 
B)  To provide the working definitions of accounting elements 
C)  To provide guidance on first-time application of IFRS 
D)  To provide the framework for setting international accounting standards

Question 9

What is the role of the liaison members of the International Accounting Standards Board?

Accepted Answer

A)  To facilitate information exchange and cooperation between the FASB and the IASB 
B)  To eliminate the political influences on the IASB and national accounting bodies 
C)  To enforce adherence to the fundamental principles of the IASB 
D)  All of the above 
A)  To facilitate information exchange and cooperation between the FASB and the IASB 
B)  To eliminate the political influences on the IASB and national accounting bodies 
C)  To enforce adherence to the fundamental principles of the IASB 
D)  All of the above

Question 10

Which of the following is NOT true of the due process followed by the IASB in formulating International Financial Reporting Standards?

Accepted Answer

A)  A period of public comment is provided after discussion papers are prepared. 
B)  Standards are approved by a unanimous vote of the 16-member board. 
C)  Exposure drafts are published prior to taking a vote of the board. 
D)  National accounting standards and practices are studied before preparing exposure drafts. 
A)  A period of public comment is provided after discussion papers are prepared. 
B)  Standards are approved by a unanimous vote of the 16-member board. 
C)  Exposure drafts are published prior to taking a vote of the board. 
D)  National accounting standards and practices are studied before preparing exposure drafts.

Question 11

The IASB's Framework for the 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 12

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 13

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

Accepted Answer

A)  Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information. 
B)  Principles-based standard setting is less costly to undertake than rules-based standard formulation. 
C)  It is desirable to have all corporations in all countries using the same accounting practice. 
D)  A conceptual framework for standard setting has demonstrated to encourage the greatest economic development. 
A)  Detailed guidance or rules encourage accountants to look for ways around the rules rather than trying to provide useful information. 
B)  Principles-based standard setting is less costly to undertake than rules-based standard formulation. 
C)  It is desirable to have all corporations in all countries using the same accounting practice. 
D)  A conceptual framework for standard setting has demonstrated to encourage the greatest economic development.

Question 14

To create an appropriate mix of members of the IASB, since 2012 the board includes:

Accepted Answer

A)  eight auditors. 
B)  eight academic representatives. 
C)  four members of the FASB. 
D)  a diverse geographical balance of members. 
A)  eight auditors. 
B)  eight academic representatives. 
C)  four members of the FASB. 
D)  a diverse geographical balance of members.

Question 15

The IASB is organized under an independent entity called:

Accepted Answer

A)  the SEC. 
B)  the AFL. 
C)  the IFRSF. 
D)  INTERPOL. 
A)  the SEC. 
B)  the AFL. 
C)  the IFRSF. 
D)  INTERPOL.

What is the official language of the IASB?

Which of the following is true of assets?

The International Accounting Standards Board was preceded by:

De facto harmonization refers to the process of:

How many trustees of the IFRS Foundation will normally be senior partners of prominent international accounting firms?

Which of the following statements is true of IFRS 1?

According to the Norwalk Agreement, the FASB will monitor:

What is the intent of IFRS 1?

What is the role of the liaison members of the International Accounting Standards Board?

Which of the following is NOT true of the due process followed by the IASB in formulating International Financial Reporting Standards?

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

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

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

To create an appropriate mix of members of the IASB, since 2012 the board includes:

The IASB is organized under an independent entity called:

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

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Exam 3: International Convergence of Financial Reporting

What is the official language of the IASB?

Which of the following is true of assets?

The International Accounting Standards Board was preceded by:

De facto harmonization refers to the process of:

How many trustees of the IFRS Foundation will normally be senior partners of prominent international accounting firms?

Which of the following statements is true of IFRS 1?

According to the Norwalk Agreement, the FASB will monitor:

What is the intent of IFRS 1?

What is the role of the liaison members of the International Accounting Standards Board?

Which of the following is NOT true of the due process followed by the IASB in formulating International Financial Reporting Standards?

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

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

Why does the IASB believe that a principles-based approach to standard setting is superior to a rules-based approach?

To create an appropriate mix of members of the IASB, since 2012 the board includes:

The IASB is organized under an independent entity called:

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