Question 1

Essentially,the entire statement of financial position is inverted compared to what is commonly seen in the United States.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are advantages available to companies if a single set of accounting standards were used except:

Accepted Answer

A) A single set of worldwide accounting standards would have no effect on accounting fee costs. 
B) A single set of standards would make it much easier to decide whether to acquire a foreign company. 
C) A single set of worldwide accounting standards would facilitate comparisons for investment purposes. 
D) A single set of worldwide accounting standards would make it easier to access foreign capital markets 
A) A single set of worldwide accounting standards would have no effect on accounting fee costs. 
B) A single set of standards would make it much easier to decide whether to acquire a foreign company. 
C) A single set of worldwide accounting standards would facilitate comparisons for investment purposes. 
D) A single set of worldwide accounting standards would make it easier to access foreign capital markets

Question 3

Under IFRS,if inventory is written down to a new lower market value,this cannot be reversed in later periods.

Accepted Answer

A) True 
 B)False

Question 4

When analyzing foreign statements,all of the following are accurate positions of non-current liabilities listings except:

Accepted Answer

A) After current liabilities 
B) Before current liabilities 
C) After share capital 
D) After total equity 
A) After current liabilities 
B) Before current liabilities 
C) After share capital 
D) After total equity

Question 5

According to the text,in economies like those that made up the former Soviet Union,accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Accepted Answer

A) True 
 B)False

Question 6

Explain the meaning of the terms contingent liabilities and provisions as they relate to U.S.GAAP and IFRS?

Accepted Answer

Under U.S.GAAP,a contingent liability is

Question 7

Significant differences exist in terms on financial statements around the world.For example,another name for what we know as Contingent Liabilities in the U.S.is:

Accepted Answer

A) Share Capital 
B) Capital Reserves 
C) Provisions for Other Risks 
D) Deferred Income 
A) Share Capital 
B) Capital Reserves 
C) Provisions for Other Risks 
D) Deferred Income

Question 8

Which of the following is a true statement about the terms used on the balance sheet?

Accepted Answer

A) U.S.GAAP requires a standard set of terms on the balance sheet. 
B) IFRS requires a standard set of terms on the balance sheet. 
C) Terminology is consistent across all countries. 
D) Neither IFRS nor U.S.GAAP requires a standard set of terms on the balance sheet. 
A) U.S.GAAP requires a standard set of terms on the balance sheet. 
B) IFRS requires a standard set of terms on the balance sheet. 
C) Terminology is consistent across all countries. 
D) Neither IFRS nor U.S.GAAP requires a standard set of terms on the balance sheet.

Question 9

Companies in Mexico must begin using IFRS by 2012.

Accepted Answer

A) True 
 B)False

Question 10

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities,while IFRS does not.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following inventory costing methods is prohibited under IFRS?

Accepted Answer

A) FIFO 
B) Weighted-average 
C) LIFO 
D) Perpetual 
A) FIFO 
B) Weighted-average 
C) LIFO 
D) Perpetual

Question 12

Regarding the valuation of operating assets,IFRS allows companies to use fair value.

Accepted Answer

A) True 
 B)False

Question 13

Explain some of the differences in accounting for operating assets that exist between U.S.GAAP and IFRS.

Accepted Answer

Both IFRS and U.S.GAAP require companies

Question 14

Which of the following statements is true regarding common law?

Accepted Answer

A) In common law countries,there are generally more statutes written into the laws. 
B) In common law countries,there is less reliance on interpretation by the courts. 
C) Because more details are written into U.S.law,FASB has shorter and more general accounting standards than most countries. 
D) The common law system has its roots in the United Kingdom. 
A) In common law countries,there are generally more statutes written into the laws. 
B) In common law countries,there is less reliance on interpretation by the courts. 
C) Because more details are written into U.S.law,FASB has shorter and more general accounting standards than most countries. 
D) The common law system has its roots in the United Kingdom.

Question 15

Which of the following presents the proper ordering of assets,liabilties and equities on the statement of financial position used by some countries that is different from the U.S.?

Accepted Answer

A) current assets,long-term assets,current liabilities 
B) inventories,trade-receivables,cash 
C) assets,liabilities,equities 
D) current liabilities,long-term liabilities,equities 
A) current assets,long-term assets,current liabilities 
B) inventories,trade-receivables,cash 
C) assets,liabilities,equities 
D) current liabilities,long-term liabilities,equities

Question 16

On the reporting of liabilities where a range of values exists as a possible outcome,IFRS requires which of the following points to be recorded as a provision,if the outcome is probable?

Accepted Answer

A) Low end of the range. 
B) High end of the range. 
C) Midpoint of the range. 
D) IFRS presents no specific guidance as to this point. 
A) Low end of the range. 
B) High end of the range. 
C) Midpoint of the range. 
D) IFRS presents no specific guidance as to this point.

Question 17

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Accepted Answer

A) True 
 B)False

Question 18

Summarize some of the common differences between U.S.GAAP and IFRS.

Accepted Answer

The answer of Summarize some of the common differences between...

Question 19

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

Accepted Answer

The two primary legal systems used aroun

Question 20

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

Accepted Answer

A) True 
 B)False

Essentially,the entire statement of financial position is inverted compared to what is commonly seen in the United States.

All of the following are advantages available to companies if a single set of accounting standards were used except:

Under IFRS,if inventory is written down to a new lower market value,this cannot be reversed in later periods.

When analyzing foreign statements,all of the following are accurate positions of non-current liabilities listings except:

According to the text,in economies like those that made up the former Soviet Union,accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Explain the meaning of the terms contingent liabilities and provisions as they relate to U.S.GAAP and IFRS?

Significant differences exist in terms on financial statements around the world.For example,another name for what we know as Contingent Liabilities in the U.S.is:

Which of the following is a true statement about the terms used on the balance sheet?

Companies in Mexico must begin using IFRS by 2012.

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities,while IFRS does not.

Which of the following inventory costing methods is prohibited under IFRS?

Regarding the valuation of operating assets,IFRS allows companies to use fair value.

Explain some of the differences in accounting for operating assets that exist between U.S.GAAP and IFRS.

Which of the following statements is true regarding common law?

Which of the following presents the proper ordering of assets,liabilties and equities on the statement of financial position used by some countries that is different from the U.S.?

On the reporting of liabilities where a range of values exists as a possible outcome,IFRS requires which of the following points to be recorded as a provision,if the outcome is probable?

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Summarize some of the common differences between U.S.GAAP and IFRS.

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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Exam 14: International Financial Reporting Standards

Essentially,the entire statement of financial position is inverted compared to what is commonly seen in the United States.

All of the following are advantages available to companies if a single set of accounting standards were used except:

Under IFRS,if inventory is written down to a new lower market value,this cannot be reversed in later periods.

When analyzing foreign statements,all of the following are accurate positions of non-current liabilities listings except:

According to the text,in economies like those that made up the former Soviet Union,accounting standards are relatively less complex due to the fact that they are just beginning to be developed.

Explain the meaning of the terms contingent liabilities and provisions as they relate to U.S.GAAP and IFRS?

Significant differences exist in terms on financial statements around the world.For example,another name for what we know as Contingent Liabilities in the U.S.is:

Which of the following is a true statement about the terms used on the balance sheet?

Companies in Mexico must begin using IFRS by 2012.

U.S.GAAP requires companies to present a balance sheet with classifications for current and long-term liabilities,while IFRS does not.

Which of the following inventory costing methods is prohibited under IFRS?

Regarding the valuation of operating assets,IFRS allows companies to use fair value.

Explain some of the differences in accounting for operating assets that exist between U.S.GAAP and IFRS.

Which of the following statements is true regarding common law?

Which of the following presents the proper ordering of assets,liabilties and equities on the statement of financial position used by some countries that is different from the U.S.?

On the reporting of liabilities where a range of values exists as a possible outcome,IFRS requires which of the following points to be recorded as a provision,if the outcome is probable?

Japan has a greater number of differences than the U.S.between the amount of income reported to stockholders and that reported to the taxing authorities.

Summarize some of the common differences between U.S.GAAP and IFRS.

Explain the two primary legal systems used around the world and what these differences have to do with accounting standards.

Both U.S.GAAP and IFRS apply the lower-of-cost-or market rule in a similar manner to inventory.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

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