Question 1

Which of the following is not a problem caused by diverse accounting practices across countries?

Accepted Answer

A)  Preparation of consolidated financial statements. 
B)  Gaining access to foreign capital markets. 
C)  Lack of comparability of financial statements between companies in the same country. 
D)  Cost and expertise required of consolidations accounting staff. 
E)  Need for a company to maintain multiple sets of accounting records. 
A)  Preparation of consolidated financial statements. 
B)  Gaining access to foreign capital markets. 
C)  Lack of comparability of financial statements between companies in the same country. 
D)  Cost and expertise required of consolidations accounting staff. 
E)  Need for a company to maintain multiple sets of accounting records.

Question 2

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 statutes 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 statutes 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 3

The following information pertains to inventory held by a company at December 31, 2011.   As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

Accepted Answer

A)  U.S. GAAP income is $1,000 higher. 
B)  U.S. GAAP income is $2,000 lower. 
C)  IFRS income is $1,000 higher. 
D)  IFRS income is $1,000 lower. 
E)  IFRS income is $5,000 higher. 
A)  U.S. GAAP income is $1,000 higher. 
B)  U.S. GAAP income is $2,000 lower. 
C)  IFRS income is $1,000 higher. 
D)  IFRS income is $1,000 lower. 
E)  IFRS income is $5,000 higher.

Question 4

What are recognition differences in international reporting and what would be an example of a difference?

Accepted Answer

Recognition differences relate to whethe

Question 5

The following information pertains to inventory held by a company on December 31, 2011.   What amount of inventory should be reported under IFRS?

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.

Question 6

Why does each country have its own unique set of financial reporting practices?

Accepted Answer

A survey identified five commonly accept

Question 7

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

Accepted Answer

A)  present financial statements that comply with international GAAP. 
B)  conform with U.S. GAAP or present a reconciliation to U.S. GAAP. 
C)  have a demonstrated need for capital to be used for operations in the U.S. 
D)  use the U.S. dollar as their reporting currency. 
E)  use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP. 
A)  present financial statements that comply with international GAAP. 
B)  conform with U.S. GAAP or present a reconciliation to U.S. GAAP. 
C)  have a demonstrated need for capital to be used for operations in the U.S. 
D)  use the U.S. dollar as their reporting currency. 
E)  use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP.

Question 8

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

Accepted Answer

A)  Measuring asset impairment. 
B)  Classifying extraordinary items. 
C)  Sale and leaseback gain recognition. 
D)  Measuring salaries expense. 
E)  Prior service cost recognition for pension amendments. 
A)  Measuring asset impairment. 
B)  Classifying extraordinary items. 
C)  Sale and leaseback gain recognition. 
D)  Measuring salaries expense. 
E)  Prior service cost recognition for pension amendments.

Question 9

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

Accepted Answer

A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Recognition differences. 
A)  Presentation differences. 
B)  Measurement differences. 
C)  Disclosure differences. 
D)  Comparability differences. 
E)  Recognition differences.

Question 10

How did the early International Accounting Standards (IAS) obtain support from a sufficient number of board members?

Accepted Answer

They allowed at leas

Question 11

The following information pertains to inventory held by a company on December 31, 2011.   What is the amount of inventory loss shown on the income statement under IFRS?

Accepted Answer

A)  $0. 
B)  $3,000. 
C)  $14,000. 
D)  $10,000. 
E)  $8,400. 
A)  $0. 
B)  $3,000. 
C)  $14,000. 
D)  $10,000. 
E)  $8,400.

Question 12

Which two EU directives have helped harmonize accounting standards?

Accepted Answer

The fourth and seventh directives have h

Question 13

A company sells a building to a bank in 2011 at a gain of $100,000 and immediately leases the building back for period of five years. The lease is accounted for as an operating lease. The building was originally purchased for $200,000 and currently had a book value of $50,000 at the date of the sale. What amount should be recognized as a gain in 2011 using IFRS?

Accepted Answer

A)  $20,000. 
B)  $50,000. 
C)  $100,000. 
D)  $150,000. 
E)  $200,000. 
A)  $20,000. 
B)  $50,000. 
C)  $100,000. 
D)  $150,000. 
E)  $200,000.

Question 14

What were the major objectives of the Treaty of Rome?

Accepted Answer

The major objectives of the Treaty of Ro

Question 15

The following information pertains to inventory held by a company at December 31, 2011.   What amount of inventory should be reported under U.S. GAAP?

Accepted Answer

A)  $25,000. 
B)  $21,000. 
C)  $20,000. 
D)  $16,800. 
E)  $16,000. 
A)  $25,000. 
B)  $21,000. 
C)  $20,000. 
D)  $16,800. 
E)  $16,000.

Question 16

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

Accepted Answer

The three authoritative pronouncements a

Question 17

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

Accepted Answer

A)  Form 8-A. 
B)  Form 10-A. 
C)  Form 16-K. 
D)  Form 20-F. 
E)  Form 20-K. 
A)  Form 8-A. 
B)  Form 10-A. 
C)  Form 16-K. 
D)  Form 20-F. 
E)  Form 20-K.

Question 18

The following information pertains to inventory held by a company on December 31, 2011.   What amount of inventory should be reported under U.S. GAAP?

Accepted Answer

A)  $16,000. 
B)  $27,000. 
C)  $30,000. 
D)  $21,600. 
E)  $20,000. 
A)  $16,000. 
B)  $27,000. 
C)  $30,000. 
D)  $21,600. 
E)  $20,000.

Question 19

A company sells a building to a bank in 2011 at a gain of $100,000 and immediately leases the building back for period of five years. The lease is accounted for as an operating lease. The building was originally purchased for $200,000 and currently had a book value of $50,000 at the date of the sale. What amount should be recognized in 2011 as a gain on the sale using U.S. GAAP?

Accepted Answer

A)  $20,000. 
B)  $50,000. 
C)  $100,000. 
D)  $150,000. 
E)  $200,000. 
A)  $20,000. 
B)  $50,000. 
C)  $100,000. 
D)  $150,000. 
E)  $200,000.

Question 20

What are measurement differences in international reporting and what would be an example of a difference?

Accepted Answer

Measurement differences result in differ

Which of the following is not a problem caused by diverse accounting practices across countries?

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

The following information pertains to inventory held by a company at December 31, 2011. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

What are recognition differences in international reporting and what would be an example of a difference?

The following information pertains to inventory held by a company on December 31, 2011. What amount of inventory should be reported under IFRS?

Why does each country have its own unique set of financial reporting practices?

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

How did the early International Accounting Standards (IAS) obtain support from a sufficient number of board members?

The following information pertains to inventory held by a company on December 31, 2011. What is the amount of inventory loss shown on the income statement under IFRS?

Which two EU directives have helped harmonize accounting standards?

What were the major objectives of the Treaty of Rome?

The following information pertains to inventory held by a company at December 31, 2011. What amount of inventory should be reported under U.S. GAAP?

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

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

The following information pertains to inventory held by a company on December 31, 2011. What amount of inventory should be reported under U.S. GAAP?

What are measurement differences in international reporting and what would be an example of a difference?

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

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

Accounting for State and Local Governments

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters

Exam 11: Worldwide Accounting Diversity and International Accounting Standards

Which of the following is not a problem caused by diverse accounting practices across countries?

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

The following information pertains to inventory held by a company at December 31, 2011. As a result of inventory loss, what is the difference in income between reporting using U.S. GAAP and IFRS?

What are recognition differences in international reporting and what would be an example of a difference?

The following information pertains to inventory held by a company on December 31, 2011. What amount of inventory should be reported under IFRS?

Why does each country have its own unique set of financial reporting practices?

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?

The types of differences that exist between IFRS and U.S. GAAP would not generally include:

How did the early International Accounting Standards (IAS) obtain support from a sufficient number of board members?

The following information pertains to inventory held by a company on December 31, 2011. What is the amount of inventory loss shown on the income statement under IFRS?

Which two EU directives have helped harmonize accounting standards?

What were the major objectives of the Treaty of Rome?

The following information pertains to inventory held by a company at December 31, 2011. What amount of inventory should be reported under U.S. GAAP?

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

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:

The following information pertains to inventory held by a company on December 31, 2011. What amount of inventory should be reported under U.S. GAAP?

What are measurement differences in international reporting and what would be an example of a difference?

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

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

Accounting for State and Local Governments

Accounting for Not-For-Profit Organizations

Accounting for Estates and Trusts

Filters