Deck 2: International Accounting Differences

Question 1

Hofstede's concept of collectivism implies that;

A)People are loyal to their relatives and social group
B)Worker cooperatives are common
C)Family is more important than society
D)People like to acquire (collect)material wealth

Answer 1

A

Question 2

Which of the following is NOT classified as a Common Law country'

A)England
B)Wales
C)Scotland
D)Ireland

Answer 2

C

Question 3

The recording of deferred tax on the balance sheet is well established in which one of the following countries?

A)Denmark
B)Sweden
C)Norway
D)Germany

Answer 3

A

Question 4

A decrease in information asymmetry between shareholders and companies increases the cost of capital.

Question 5

The use of another company as a performance yardstick is jeopardized by;

A)language differences
B)accounting flexibility
C)currency differences
D)different accounting periods

Question 6

In countries that are classified as Code Law countries the degree of enforcement of investor protection is much stricter.

Question 7

In countries classified as Code Law countries 'the substance' dominates 'the legal form'.

Question 8

The difference in providers of finance is one of the key causes of international differences in financial reporting.

Question 9

In most countries with an active equity market the legal system is the common law system.

Question 10

Which of the following is an 'accounting value' as defined by Gray (1988)

A)Professionalism versus Adhocracy
B)Rigidity versus Flexibility
C)Pessimism versus Optimism
D)Secrecy versus Transparency