Question 1

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 acquisition 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 for future standard-setting. 
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 acquisition 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 for future standard-setting. 
E)  to agree upon financial statement titles that will have no differentiation after translation to various languages.

Question 2

Which topic was not covered by FASB 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 3

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 U.S. GAAP?

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 4

The following information pertains to inventory held by a company on 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 $3,000 higher. 
B)  U.S. GAAP income is $10,000 lower. 
C)  IFRS income is $8,400 higher. 
D)  IFRS income is $3,000 lower. 
E)  IFRS income is $5,400 higher. 
A)  U.S. GAAP income is $3,000 higher. 
B)  U.S. GAAP income is $10,000 lower. 
C)  IFRS income is $8,400 higher. 
D)  IFRS income is $3,000 lower. 
E)  IFRS income is $5,400 higher.

Question 5

Which of the following is not a way for a country to use IFRS?

Accepted Answer

A)  Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements. 
B)  Allow foreign companies listed on that country's stock exchange to use IFRS. 
C)  Allow that country's companies listed on its stock exchange to use IFRS. 
D)  Adopt IFRS as that country's national GAAP. 
E)  All of the above are ways a country can use IFRS. 
A)  Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements. 
B)  Allow foreign companies listed on that country's stock exchange to use IFRS. 
C)  Allow that country's companies listed on its stock exchange to use IFRS. 
D)  Adopt IFRS as that country's national GAAP. 
E)  All of the above are ways a country can use IFRS.

Question 6

A company acquired a new piece of equipment on January 1, 2009 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2011, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. At what amount should the equipment be reported on the December 31, 2011 balance sheet under U.S. GAAP?

Accepted Answer

A)  $160,000 
B)  $150,000 
C)  $146,000 
D)  $140,000 
E)  $116,000 
A)  $160,000 
B)  $150,000 
C)  $146,000 
D)  $140,000 
E)  $116,000

Question 7

Which of the following are not authoritative pronouncements of International Financial Reporting Standards (IFRSs)? 1) International Financial Reporting Standards issued by the IASB
2) International Accounting Standards issued by the IASC and adopted by the IASB
3) Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC)
4) U.S. Generally Accepted Accounting Principles

Accepted Answer

A)  4 only. 
B)  3 and 4. 
C)  1, 3, and 4. 
D)  2, 3, and 4. 
E)  1, 2, 3, and 4. 
A)  4 only. 
B)  3 and 4. 
C)  1, 3, and 4. 
D)  2, 3, and 4. 
E)  1, 2, 3, and 4.

Question 8

In countries where there is less pressure for public accountability and information disclosure:

Accepted Answer

A)  information needs can be satisfied by requesting information from internal company sources. 
B)  public offerings of stock shares are the primary source of financing for companies. 
C)  accounting information is prepared to meet the needs of taxing authorities. 
D)  accounting standards emphasize accounting for high inflation situations. 
E)  the accounting focus is on recent market economy reforms. 
A)  information needs can be satisfied by requesting information from internal company sources. 
B)  public offerings of stock shares are the primary source of financing for companies. 
C)  accounting information is prepared to meet the needs of taxing authorities. 
D)  accounting standards emphasize accounting for high inflation situations. 
E)  the accounting focus is on recent market economy reforms.

Question 9

Which of the following statements is false regarding providers of financing?

Accepted Answer

A)  There is less pressure to provide accounting information in those countries in which financing is primarily by banks. 
B)  In countries where capital stock is the primary source of financing, accounting emphasizes the income statement. 
C)  Disclosures are less extensive in those countries financed primarily by stock. 
D)  Bankers tend to focus more on solvency and stockholders focus more on profitability. 
E)  As companies become more dependent on financing by stock, more information is demanded. 
A)  There is less pressure to provide accounting information in those countries in which financing is primarily by banks. 
B)  In countries where capital stock is the primary source of financing, accounting emphasizes the income statement. 
C)  Disclosures are less extensive in those countries financed primarily by stock. 
D)  Bankers tend to focus more on solvency and stockholders focus more on profitability. 
E)  As companies become more dependent on financing by stock, more information is demanded.

Question 10

What accounting topics were covered under the FASB short-term convergence project?

Accepted Answer

The topics covered under the s

Question 11

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 12

What are the four different ways IFRS can be used by a country?

Accepted Answer

IFRSs can be used by a country by (1) ad

Question 13

What are the six key FASB initiatives to further convergence?

Accepted Answer

The six key FASB initiatives to further

Question 14

Convergence of accounting standards would not occur by:

Accepted Answer

A)  FASB adopting an existing IASB standard. 
B)  IASB adopting an existing FASB standard. 
C)  IASB issuing a new standard. 
D)  IASB and FASB jointly developing a new standard. 
E)  IASB and FASB each issuing a similar but not identical standard. 
A)  FASB adopting an existing IASB standard. 
B)  IASB adopting an existing FASB standard. 
C)  IASB issuing a new standard. 
D)  IASB and FASB jointly developing a new standard. 
E)  IASB and FASB each issuing a similar but not identical standard.

Question 15

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. As a result of the sale and leaseback transaction in 2011, what is the difference between income using U.S. GAAP and IFRS in 2011?

Accepted Answer

A)  U.S. GAAP income is $80,000 higher. 
B)  U.S. GAAP income is $100,000 higher. 
C)  IFRS income is $50,000 lower. 
D)  IFRS income is $100,000 lower. 
E)  IFRS income is $80,000 higher. 
A)  U.S. GAAP income is $80,000 higher. 
B)  U.S. GAAP income is $100,000 higher. 
C)  IFRS income is $50,000 lower. 
D)  IFRS income is $100,000 lower. 
E)  IFRS income is $80,000 higher.

Question 16

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

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 17

Which of the following is not true about IFRS?

Accepted Answer

A)  The IASB does not have the ability to enforce proper usage of IFRS. 
B)  IFRS is available to any organization or nation that wishes to use those standards. 
C)  IFRS is a comprehensive set of financial reporting standards. 
D)  IFRS includes only pronouncements issued by the IASB. 
E)  IFRS are considered as generally accepted accounting principles. 
A)  The IASB does not have the ability to enforce proper usage of IFRS. 
B)  IFRS is available to any organization or nation that wishes to use those standards. 
C)  IFRS is a comprehensive set of financial reporting standards. 
D)  IFRS includes only pronouncements issued by the IASB. 
E)  IFRS are considered as generally accepted accounting principles.

Question 18

What problems are caused by diverse accounting practices?

Accepted Answer

(1) Difficulty in preparation of consoli

Question 19

A company acquired a new piece of equipment on January 1, 2009 at a cost of $200,000. The equipment is expected to have a useful life of 10 years, a residual value of $20,000 and is depreciated on a straight-line basis. On January 1, 2011, the equipment was appraised and determined to have a fair value of $190,000 and a residual value of $25,000 and a remaining useful life of 10 years. At what amount should the equipment be reported on the December 31, 2011 balance sheet under the IFRS revaluation model?

Accepted Answer

A)  $190,000 
B)  $173,500 
C)  $165,000 
D)  $136,000 
E)  $110,000 
A)  $190,000 
B)  $173,500 
C)  $165,000 
D)  $136,000 
E)  $110,000

Question 20

What is the IOSCO?

Accepted Answer

IOSCO is an organization of stock exchan

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

Which topic was not covered by FASB under the short-term convergence project?

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 U.S. GAAP?

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

Which of the following is not a way for a country to use IFRS?

In countries where there is less pressure for public accountability and information disclosure:

Which of the following statements is false regarding providers of financing?

What accounting topics were covered under the FASB short-term convergence project?

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

What are the four different ways IFRS can be used by a country?

What are the six key FASB initiatives to further convergence?

Convergence of accounting standards would not occur by:

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

Which of the following is not true about IFRS?

What problems are caused by diverse accounting practices?

What is the IOSCO?

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

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

Which topic was not covered by FASB under the short-term convergence project?

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 U.S. GAAP?

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

Which of the following is not a way for a country to use IFRS?

In countries where there is less pressure for public accountability and information disclosure:

Which of the following statements is false regarding providers of financing?

What accounting topics were covered under the FASB short-term convergence project?

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

What are the four different ways IFRS can be used by a country?

What are the six key FASB initiatives to further convergence?

Convergence of accounting standards would not occur by:

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

Which of the following is not true about IFRS?

What problems are caused by diverse accounting practices?

What is the IOSCO?

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