Question 1

What is meant by harmonization of accounting standards?

Accepted Answer

Harmonization is the process of reducing differences in financial reporting practices across countries,thereby increasing the comparability of financial statements.The goal of harmonization is the development of a single set of international accounting standards to be applied in all countries.

Question 2

REFERENCE: Ref.11_02
The following information pertains to inventory held by a company on December 31,2008.  
-What amount of inventory should be reported under US GAAP?

Accepted Answer

A) $25,000. 
B) $27,000. 
C) $30,000. 
D) $5,000. 
E) $2,000. 
A) $25,000. 
B) $27,000. 
C) $30,000. 
D) $5,000. 
E) $2,000. A

Question 3

The IASB and FASB are working on several joint projects.What is the purpose of the Performance Reporting Project?

Accepted Answer

A) to provide guidance on the application of the purchase method. 
B) to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. 
C) to develop a common comprehensive standard on revenue recognition. 
D) to develop a common conceptual framework that both boards can use as a basis of futures standards. 
E) to agree upon financial statement titles that will have no differentiation after translation to various languages. 
A) to provide guidance on the application of the purchase method. 
B) to enhance the usefulness of information in assessing the financial performance of the reporting enterprise. 
C) to develop a common comprehensive standard on revenue recognition. 
D) to develop a common conceptual framework that both boards can use as a basis of futures standards. 
E) to agree upon financial statement titles that will have no differentiation after translation to various languages. B

Question 4

Which of the following is not a factor influencing a country's financial reporting practices?

Accepted Answer

A) Providers of financing. 
B) Inflation. 
C) Legal system. 
D) Gross National Product. 
E) Political and economic ties. 
A) Providers of financing. 
B) Inflation. 
C) Legal system. 
D) Gross National Product. 
E) Political and economic ties.

Question 5

REFERENCE: Ref.11_01
The following information pertains to inventory held by a company upon December 31,2008.  
-What amount of inventory should be reported under US GAAP?

Accepted Answer

A) $25,000. 
B) $21,000. 
C) $20,000. 
D) $4,000. 
E) $5,000. 
A) $25,000. 
B) $21,000. 
C) $20,000. 
D) $4,000. 
E) $5,000.

Question 6

Harmonization of financial reporting practices is:

Accepted Answer

A) The process of reducing differences in financial reporting practices across countries. 
B) The process of translating differences in financial reporting practices across countries. 
C) The process of increasing differences in financial reporting practices across countries. 
D) The process of allowing different countries to create unique financial reporting practices. 
E) The process of creating similar accounting practices according to geographic regions of the world. 
A) The process of reducing differences in financial reporting practices across countries. 
B) The process of translating differences in financial reporting practices across countries. 
C) The process of increasing differences in financial reporting practices across countries. 
D) The process of allowing different countries to create unique financial reporting practices. 
E) The process of creating similar accounting practices according to geographic regions of the world.

Question 7

The financial statements of German and Japanese companies

Accepted Answer

A) usually overstate earnings. 
B) usually overstate assets. 
C) tend to underestimate earnings. 
D) provide a realistic estimate of earnings. 
E) do not include an income statement or the equivalent. 
A) usually overstate earnings. 
B) usually overstate assets. 
C) tend to underestimate earnings. 
D) provide a realistic estimate of earnings. 
E) do not include an income statement or the equivalent.

Question 8

What problems are caused by diverse accounting practices?

Accepted Answer

(1)Difficulty in preparation of consolid

Question 9

What are the arguments in favor of accounting harmonization?

Accepted Answer

(1)comparability of financial statements

Question 10

What were the major objectives of the Treaty of Rome?

Accepted Answer

The major objectives of the Treaty of Ro

Question 11

The IASB and FASB are working on several joint projects.What is the purpose of the Revenue Recognition Project?

Accepted Answer

A) to provide guidance on the application of the purchase method 
B) to enhance the usefulness of information in assessing the financial performance of the reporting enterprise 
C) to develop a common comprehensive standard on revenue recognition 
D) to develop a common conceptual framework that both boards can use as a basis of futures standards 
E) to agree upon financial statement titles that will have no differentiation after translation to various languages. 
A) to provide guidance on the application of the purchase method 
B) to enhance the usefulness of information in assessing the financial performance of the reporting enterprise 
C) to develop a common comprehensive standard on revenue recognition 
D) to develop a common conceptual framework that both boards can use as a basis of futures standards 
E) to agree upon financial statement titles that will have no differentiation after translation to various languages.

Question 12

Which of the following statements is false regarding a country's legal system?

Accepted Answer

A) The two major types of legal systems are common law and codified Roman law. 
B) Common law originated in the Roman jus civile. 
C) Code law countries tend to have more statute governing a wider range of human activity. 
D) Accounting law is rather general in code law countries. 
E) A nongovernmental organization is more likely to develop in a common law country than in a code law country. 
A) The two major types of legal systems are common law and codified Roman law. 
B) Common law originated in the Roman jus civile. 
C) Code law countries tend to have more statute governing a wider range of human activity. 
D) Accounting law is rather general in code law countries. 
E) A nongovernmental organization is more likely to develop in a common law country than in a code law country.

Question 13

Which topic is NOT covered under the short-term convergence project?

Accepted Answer

A) Inventory costs. 
B) Asset exchanges. 
C) Liability transfers. 
D) Accounting changes. 
E) Earnings-per-share. 
A) Inventory costs. 
B) Asset exchanges. 
C) Liability transfers. 
D) Accounting changes. 
E) Earnings-per-share.

Question 14

REFERENCE: Ref.11_01
The following information pertains to inventory held by a company upon December 31,2008.  
-What amount of inventory should be reported under IFRSs?

Accepted Answer

A) $25,000 
B) $21,000 
C) $20,000 
D) $4,000 
E) $5,000 
A) $25,000 
B) $21,000 
C) $20,000 
D) $4,000 
E) $5,000

Question 15

How did the early IASs obtain support from a sufficient number of board members?

Accepted Answer

They allowed at leas

Question 16

Which of the following is not an argument for harmonization of financial reporting practices?

Accepted Answer

A) Increased ease of investors to evaluate potential investments in foreign securities. 
B) Simplification of the evaluation by multinational companies of possible foreign takeover targets. 
C) Enable companies to lower their cost of capital. 
D) Reduced cost of preparing worldwide consolidated financial statements. 
E) Difficulty in accomplishing a common set of standards. 
A) Increased ease of investors to evaluate potential investments in foreign securities. 
B) Simplification of the evaluation by multinational companies of possible foreign takeover targets. 
C) Enable companies to lower their cost of capital. 
D) Reduced cost of preparing worldwide consolidated financial statements. 
E) Difficulty in accomplishing a common set of standards.

Question 17

REFERENCE: Ref.11_01
The following information pertains to inventory held by a company upon December 31,2008.  
-What is the amount of inventory loss shown on the income statement under US GAAP?

Accepted Answer

A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000. 
A) $1,000. 
B) $2,000. 
C) $4,000. 
D) $5,000. 
E) $6,000.

Question 18

What is the IOSCO?

Accepted Answer

An organization of stock exchange regula

Question 19

What are the three authoritative pronouncements that make up the International Financial Reporting Standards (IFRSs)?

Accepted Answer

The three authoritative pronouncements a

Question 20

REFERENCE: Ref.11_02
The following information pertains to inventory held by a company on December 31,2008.  
-What amount of inventory should be reported under IFRSs?

Accepted Answer

A) $25,000. 
B) $27,000. 
C) $30,000. 
D) $5,000. 
E) $2,000. 
A) $25,000. 
B) $27,000. 
C) $30,000. 
D) $5,000. 
E) $2,000.

What is meant by harmonization of accounting standards?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What amount of inventory should be reported under US GAAP?

The IASB and FASB are working on several joint projects.What is the purpose of the Performance Reporting Project?

Which of the following is not a factor influencing a country's financial reporting practices?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What amount of inventory should be reported under US GAAP?

Harmonization of financial reporting practices is:

The financial statements of German and Japanese companies

What problems are caused by diverse accounting practices?

What are the arguments in favor of accounting harmonization?

What were the major objectives of the Treaty of Rome?

The IASB and FASB are working on several joint projects.What is the purpose of the Revenue Recognition Project?

Which of the following statements is false regarding a country's legal system?

Which topic is NOT covered under the short-term convergence project?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What amount of inventory should be reported under IFRSs?

How did the early IASs obtain support from a sufficient number of board members?

Which of the following is not an argument for harmonization of financial reporting practices?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What is the amount of inventory loss shown on the income statement under US GAAP?

What is the IOSCO?

What are the three authoritative pronouncements that make up the International Financial Reporting Standards (IFRSs)?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What amount of inventory should be reported under IFRSs?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

What is meant by harmonization of accounting standards?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What amount of inventory should be reported under US GAAP?

The IASB and FASB are working on several joint projects.What is the purpose of the Performance Reporting Project?

Which of the following is not a factor influencing a country's financial reporting practices?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What amount of inventory should be reported under US GAAP?

Harmonization of financial reporting practices is:

The financial statements of German and Japanese companies

What problems are caused by diverse accounting practices?

What are the arguments in favor of accounting harmonization?

What were the major objectives of the Treaty of Rome?

The IASB and FASB are working on several joint projects.What is the purpose of the Revenue Recognition Project?

Which of the following statements is false regarding a country's legal system?

Which topic is NOT covered under the short-term convergence project?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What amount of inventory should be reported under IFRSs?

How did the early IASs obtain support from a sufficient number of board members?

Which of the following is not an argument for harmonization of financial reporting practices?

REFERENCE: Ref.11_01 The following information pertains to inventory held by a company upon December 31,2008. -What is the amount of inventory loss shown on the income statement under US GAAP?

What is the IOSCO?

What are the three authoritative pronouncements that make up the International Financial Reporting Standards (IFRSs)?

REFERENCE: Ref.11_02 The following information pertains to inventory held by a company on December 31,2008. -What amount of inventory should be reported under IFRSs?

The Equity Method of Accounting for Investments

Consolidation of Financial Information

Consolidations - Subsequent to the Date of Acquisition

Consolidated Financial Statements and Outside Ownership

Consolidated Financial Statements - Intercompany Asset Transactions

Variable Interest Entities, intercompany Debt, consolidated Statement of Cash Flows, and Other Issues

Consolidated Financial Statements - Ownership Patterns and Income Taxes

Segment and Interim Reporting

Foreign Currency Transactions and Hedging Foreign Exchange Risk

Translation of Foreign Currency Financial Statements

Financial Reporting and the Securities and Exchange Commission

Accounting for Legal Reorganizations and Liquidations

Partnerships: Formation and Operation

Partnerships: Termination and Liquidation

Accounting for State and Local Governments, Part I

Accounting for State and Local Governments,part II

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters