Accounting Quiz: Test MCQ!

Have a demonstrated need for capital to be used for operations in the U.S.

Use the U.S. dollar as their reporting currency.

Present financial statements that comply with international GAAP.

Use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP.

Conform with U.S. GAAP or present a reconciliation to U.S. GAAP.

Audit.

Academia.

Financial statement user.

Financial statement preparation.

Tax.

Inflation.

Providers of financing.

Legal system.

Political and economic ties.

Gross national product.

Lack of comparability of financial statements between companies in the same country.

Preparation of consolidated financial statements.

Cost and expertise required of consolidations accounting staff.

Gaining access to foreign capital markets.

Need for a company to maintain multiple sets of accounting records.

Joint projects sharing FASB and IASB staff resources.

Monitoring ongoing IASB projects.

Short-term convergence projects.

Researching differences between U.S. GAAP and IFRS.

Having the IASB Chairman in-residence at the FASB office.

First-Time Adoption of IFRS.

Operating Segments.

Financial Instruments: Disclosures.

Agriculture.

Business Combinations.

All of the these are ways a country can use IFRS.

Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements.

Adopt IFRS as that country's national GAAP.

Allow foreign companies listed on that country's stock exchange to use IFRS .

Allow that country's companies listed on its stock exchange to use IFRS.

IFRS is a comprehensive set of financial reporting standards.

IFRS are considered as generally accepted accounting principles.

IFRS is available to any organization or nation that wishes to use those standards.

IFRS includes only pronouncements issued by the IASB.

The IASB does not have the ability to enforce proper usage of IFRS.

Disclosures are less extensive in those countries financed primarily by stock.

As companies become more dependent on financing by stock, more information is demanded.

In countries where capital stock is the primary source of financing, accounting emphasizes the income statement.

There is less pressure to provide accounting information in those countries in which financing is primarily by banks.

Bankers tend to focus more on solvency and stockholders focus more on profitability.

1, 3, and 4.

2, 3, and 4.

3 and 4.

4 only.

1, 2, 3, and 4.