Accounting Quiz: Test MCQ!

10 Questions | By Baybayev | Updated: Mar 20, 2022 | Attempts: 644

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1.

In the United States, foreign companies filing annual reports with the SEC that are not prepared in accordance with U.S. GAAP must:
- A.
  
  Have a demonstrated need for capital to be used for operations in the U.S.
- B.
  
  Use the U.S. dollar as their reporting currency.
- C.
  
  Present financial statements that comply with international GAAP.
- D.
  
  Use IFRS, or use foreign GAAP and provide a reconciliation to U.S. GAAP.
- E.
  
  Conform with U.S. GAAP or present a reconciliation to U.S. GAAP.
2.

Which one of the following is not a background requirement for any IASB members?
- A.
  
  Audit.
- B.
  
  Academia.
- C.
  
  Financial statement user.
- D.
  
  Financial statement preparation.
- E.
  
  Tax.
3.

Which of the following is not a factor influencing a country's financial reporting practices?
- A.
  
  Inflation.
- B.
  
  Providers of financing.
- C.
  
  Legal system.
- D.
  
  Political and economic ties.
- E.
  
  Gross national product.
4.

Which of the following is not a problem caused by diverse accounting practices across countries?
- A.
  
  Lack of comparability of financial statements between companies in the same country.
- B.
  
  Preparation of consolidated financial statements.
- C.
  
  Cost and expertise required of consolidations accounting staff.
- D.
  
  Gaining access to foreign capital markets.
- E.
  
  Need for a company to maintain multiple sets of accounting records.
5.

Which of the following are not key FASB initiatives to further converge IFRS and U.S. GAAP?
- A.
  
  Joint projects sharing FASB and IASB staff resources.
- B.
  
  Monitoring ongoing IASB projects.
- C.
  
  Short-term convergence projects.
- D.
  
  Researching differences between U.S. GAAP and IFRS.
- E.
  
  Having the IASB Chairman in-residence at the FASB office.
6.

Which of the following is not an IFRS pronouncement originally issued by the IASB?
- A.
  
  First-Time Adoption of IFRS.
- B.
  
  Operating Segments.
- C.
  
  Financial Instruments: Disclosures.
- D.
  
  Agriculture.
- E.
  
  Business Combinations.
7.

Which of the following is not a way for a country to use IFRS?
- A.
  
  All of the these are ways a country can use IFRS.
- B.
  
  Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements.
- C.
  
  Adopt IFRS as that country's national GAAP.
- D.
  
  Allow foreign companies listed on that country's stock exchange to use IFRS .
- E.
  
  Allow that country's companies listed on its stock exchange to use IFRS.
8.

Which of the following is not true about IFRS?
- A.
  
  IFRS is a comprehensive set of financial reporting standards.
- B.
  
  IFRS are considered as generally accepted accounting principles.
- C.
  
  IFRS is available to any organization or nation that wishes to use those standards.
- D.
  
  IFRS includes only pronouncements issued by the IASB.
- E.
  
  The IASB does not have the ability to enforce proper usage of IFRS.
9.

Which of the following statements is false regarding providers of financing?
- A.
  
  Disclosures are less extensive in those countries financed primarily by stock.
- B.
  
  As companies become more dependent on financing by stock, more information is demanded.
- C.
  
  In countries where capital stock is the primary source of financing, accounting emphasizes the income statement.
- D.
  
  There is less pressure to provide accounting information in those countries in which financing is primarily by banks.
- E.
  
  Bankers tend to focus more on solvency and stockholders focus more on profitability.
10.

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