Question 1

The benefits of a single set of accounting standards used around the world would include all of the following except

Accepted Answer

A) they would eventually save companies considerable money in accounting fees. 
B) they would prevent competitors from acquiring each other. 
C) they would allow easier comparisons by analysts and investors. 
D) they would facilitate access to foreign capital markets. 
A) they would eventually save companies considerable money in accounting fees. 
B) they would prevent competitors from acquiring each other. 
C) they would allow easier comparisons by analysts and investors. 
D) they would facilitate access to foreign capital markets.

Question 2

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the United States?

Accepted Answer

A) 2009 
B) 2007 
C) 2002 
D) 2008 
A) 2009 
B) 2007 
C) 2002 
D) 2008

Question 3

Which of the following statements is true regarding the treatment of leases on the financial statements?

Accepted Answer

A) U.S.GAAP prohibits the presentation of leases on the financial statements since they are off-balance-sheet transactions. 
B) U.S.GAAP criteria for lease capitalization are less strict than IFRS. 
C) The criteria concerning whether a lease is a capital lease are very different for IFRS and U.S.GAAP. 
D) The criteria required for lease capitalization under IFRS are considered more like guidelines rather than strict rules. 
A) U.S.GAAP prohibits the presentation of leases on the financial statements since they are off-balance-sheet transactions. 
B) U.S.GAAP criteria for lease capitalization are less strict than IFRS. 
C) The criteria concerning whether a lease is a capital lease are very different for IFRS and U.S.GAAP. 
D) The criteria required for lease capitalization under IFRS are considered more like guidelines rather than strict rules.

Question 4

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the United States?

Accepted Answer

A) FASB 
B) SEC 
C) IASB 
D) AICPA 
A) FASB 
B) SEC 
C) IASB 
D) AICPA

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

When comparing U.S.GAAP and IFRS,regarding the level of details in the standards and the level of disclosure required,which of the following is correct? 
\(\begin{array}{ll}\text { U.S. GAAP }&\text { IFRS }\\hline

Accepted Answer

A) 
\begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: More }
\end{array} & \begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: Less }
\end{array} \\ 
B) 
\begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: Less }
\end{array} & \begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: More }
\end{array} \\ 
C) 
\begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: Less }
\end{array} & \begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: More }
\end{array} \\ 
D) 
	ext { Detail: Less } & 	ext { Detail: More } \
	ext { Disclosure: More } & 	ext { Disclosure: Less }
\end{array}\) 
A) 
\begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: More }
\end{array} & \begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: Less }
\end{array} \\ 
B) 
\begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: Less }
\end{array} & \begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: More }
\end{array} \\ 
C) 
\begin{array}{l}
	ext { Detail: Less } \
	ext { Disclosure: Less }
\end{array} & \begin{array}{l}
	ext { Detail: More } \
	ext { Disclosure: More }
\end{array} \\ 
D) 
	ext { Detail: Less } & 	ext { Detail: More } \
	ext { Disclosure: More } & 	ext { Disclosure: Less }
\end{array}\)

Question 7

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 8

The group with primary responsibility for development of a single set of accounting standards around the world is the

Accepted Answer

A) FASB. 
B) SEC. 
C) IFRS. 
D) IASB. 
A) FASB. 
B) SEC. 
C) IFRS. 
D) IASB.

Question 9

On the reporting of liabilities where a range of values exists as a possible outcome,IFRS require 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 present 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 present no specific guidance as to this point.

Question 10

Which of the following countries do not use a common law system?

Accepted Answer

A) United States 
B) Germany 
C) United Kingdom 
D) United States and United Kingdom 
A) United States 
B) Germany 
C) United Kingdom 
D) United States and United Kingdom

Question 11

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

Accepted Answer

A) Sarbanes-Oxley Act 
B) Norwalk Agreement 
C) IFRS Foundation 
D) Conceptual Framework 
A) Sarbanes-Oxley Act 
B) Norwalk Agreement 
C) IFRS Foundation 
D) Conceptual Framework

Question 12

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,the 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,the FASB has shorter and more general accounting standards than most countries. 
D) The common law system has its roots in the United Kingdom.

Question 13

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 14

Ultimately,it will be the responsibility of the FASB in the United States to decide if the advantages of IFRS's outweigh the disadvantages.

Accepted Answer

A) True 
 B)False

Question 15

Discuss at least four reasons that accounting standards currently differ between countries.

Accepted Answer

Accounting standards currently differ be

Question 16

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 17

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 worldwide 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 worldwide 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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

When analyzing foreign statements,all of the following are accurate positions of noncurrent liabilities listings except

Accepted Answer

A) after total equity. 
B) before current liabilities. 
C) after share capital. 
D) after current liabilities. 
A) after total equity. 
B) before current liabilities. 
C) after share capital. 
D) after current liabilities.

The benefits of a single set of accounting standards used around the world would include all of the following except

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the United States?

Which of the following statements is true regarding the treatment of leases on the financial statements?

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the United States?

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

When comparing U.S.GAAP and IFRS,regarding the level of details in the standards and the level of disclosure required,which of the following is correct? \(\begin{array}{ll}\text { U.S. GAAP }&\text { IFRS }\\\hline

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

The group with primary responsibility for development of a single set of accounting standards around the world is the

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

Which of the following countries do not use a common law system?

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

Which of the following statements is true regarding common law?

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

Ultimately,it will be the responsibility of the FASB in the United States to decide if the advantages of IFRS's outweigh the disadvantages.

Discuss at least four reasons that accounting standards currently differ between countries.

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.

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

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

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

When analyzing foreign statements,all of the following are accurate positions of noncurrent liabilities listings except

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

The benefits of a single set of accounting standards used around the world would include all of the following except

During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the United States?

Which of the following statements is true regarding the treatment of leases on the financial statements?

Which organization would have the ultimate responsibility of deciding if the advantages outweigh the disadvantages in the adoption of IFRS accounting standards in the United States?

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

When comparing U.S.GAAP and IFRS,regarding the level of details in the standards and the level of disclosure required,which of the following is correct? \(\begin{array}{ll}\text { U.S. GAAP }&\text { IFRS }\\\hline

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

The group with primary responsibility for development of a single set of accounting standards around the world is the

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

Which of the following countries do not use a common law system?

What is the name of the formalized commitment of the IASB and the FASB to converge U.S.and international accounting standards?

Which of the following statements is true regarding common law?

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

Ultimately,it will be the responsibility of the FASB in the United States to decide if the advantages of IFRS's outweigh the disadvantages.

Discuss at least four reasons that accounting standards currently differ between countries.

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.

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

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

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

When analyzing foreign statements,all of the following are accurate positions of noncurrent liabilities listings except

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

Filters