International Accounting Developments Phase Test 2

50 Questions | Total Attempts: 214

Settings
Please wait...
Accounting Quizzes & Trivia

International Accounting Developments Phase Test: Sample Questions(Answers)


Questions and Answers
  • 1. 
    • A. 

      International Financial Reporting Issues Committee

    • B. 

      International Financial Recommendation and Interpretations committee

    • C. 

      International Financial Reporting Interpretation Committee

    • D. 

      International Financial Reporting Issues Council

  • 2. 
    Which of the following accounting practices is not permitted by the IAS?
    • A. 

      Capitalization of development expenditure

    • B. 

      The LIFO method of inventory valuation

    • C. 

      Capitalization of certain types of leases

    • D. 

      Capitalization of goodwill

  • 3. 
    According to Gray’s (1988) theory, conservatism is most closely associated with:
    • A. 

      High individualism and low uncertainty avoidance

    • B. 

      Strong collectivism and strong uncertainty avoidance

    • C. 

      Low power distance and high individualism

    • D. 

      High power distance and low uncertainty avoidance

  • 4. 
    Communist accounting was based on:
    • A. 

      Needs of economic and production planning

    • B. 

      Making specified profits as a monopoly producer

    • C. 

      Returning profits to the state as an investor

    • D. 

      The requirements as laid down by the Chartered Russian Accounting Professionals

  • 5. 
    Which of the following are cultural values developed by Hofstede?
    • A. 

      Professionalism

    • B. 

      Statutory control

    • C. 

      Power distance

    • D. 

      Conservatism

  • 6. 
    What does IASC (formed in 1973) stand for?
    • A. 

      International Accounting Standards Committee

    • B. 

      International Accounting Standards Commission

  • 7. 
    What year IFRS (International Financial Reporting Standards) was formed in?
    • A. 

      2002

    • B. 

      2003

    • C. 

      2001

    • D. 

      2004

  • 8. 
    Main purpose of IFRS (IASC before 2002)?
    • A. 

      UNIFORMITY in Accounting Principles Internationally

    • B. 

      Objectivity in Accounting Principles Internationally

    • C. 

      Matching principle in Accounting Principles Internationally

  • 9. 
    China implemented IFRS (for all listed companies) in:
    • A. 

      January 2007

    • B. 

      January 2008

    • C. 

      January 2009

  • 10. 
    In what year Europe has adopted IFRS first time (International Financial Reportin Standards)?
    • A. 

      Year ended 31 December 2006

    • B. 

      Year ended 31 December 2007

  • 11. 
     USA - Financial Accounting Standards Board (FASB) is:
    • A. 

      Public-sector organization that determines accounting standards

    • B. 

      Private-sector organization that determines accounting standards

  • 12. 
    USA. SEC - The Securities and Exchange Commission is
    • A. 

      A government agency - underpins FASB`s authority

    • B. 

      A non government agency - underpins FASB`s authority

  • 13. 
    • A. 

      Single-step impairment

    • B. 

      Two-step impairment

    • C. 

      Tree-step impairment

  • 14. 
    US GAAP permits LIFO?
    • A. 

      True

    • B. 

      False

  • 15. 
    What standard provide very specific and industry guidance about constitutes revenue, how revenue should be measured, and the effect of timing on recognition?
    • A. 

      US GAAP

    • B. 

      IFRS

  • 16. 
    Which standards are non specific about the timing and measurement of recognition; lacks industry-specific guidance?
    • A. 

      IFRS

    • B. 

      US GAAP

  • 17. 
    Debt covenant (agreement) violations must be cured by fiscal year end.
    • A. 

      IFRS

    • B. 

      US GAAP

  • 18. 
    • A. 

      USA

    • B. 

      Comparability

    • C. 

      Easier/Cheaper investment

    • D. 

      Lower Audit cost

  • 19. 
    Investment strategies for diversity. Invest in an index-based portfolio, innore company information. What investment strategy is it?
    • A. 

      Active

    • B. 

      Passive

    • C. 

      Mixed

  • 20. 
    Why invest internationally? (check all that aplies)
    • A. 

      Portfolio diversification internationally

    • B. 

      Growth industries

    • C. 

      Market move similarly but not with perfect correlation

  • 21. 
    What are the Benefits of foregn listing? Public share offerings (check all that aplies)
    • A. 

      Need to raise additional equity finance

    • B. 

      Local stock market too small or lacks liquidity

    • C. 

      Overcome national barriers

    • D. 

      Control and oversight systems

    • E. 

      Registration & Regulation

    • F. 

      Listing to provide equity finance for overseas acquisition

  • 22. 
    What are the Costs of foreign listening? (check all that aplies)
    • A. 

      Underwriting (insurance)of new offers

    • B. 

      Registration and regulation

    • C. 

      Initial disclosure requirements

    • D. 

      Control & oversight systems

    • E. 

      Clearance & settlements of share deals

    • F. 

      Local stock market too small or lacks liquidity

  • 23. 
    Have a look at facts about London Stock Exchange: (check all that aplies)
    • A. 

      Accept all EU accounting under "mutual(relative) recognition"

    • B. 

      Don`t accept Japanese accounting

    • C. 

      Accepts US GAAP and IASs(International Accounting Standards)

    • D. 

      Strong element of foreign listing in London.

  • 24. 
    SEC (The Securities & Exchange Commission) regulates not all of listing on US exchanges?(check all that aplies)
    • A. 

      True

    • B. 

      False

  • 25. 
    Meaning of "transparency" that users are fully informed on: (check all that aplies)
    • A. 

      Process of preparing information

    • B. 

      Procedures, e.g. data collection

    • C. 

      Assumptions

    • D. 

      Assurance/audit

  • 26. 
    Evaluation of transparency. Standard & Poor`s gives transparency and disclosure score based on: (check all that aplies)
    • A. 

      Assumption.

    • B. 

      Audit.

    • C. 

      Ownership structure and investor relations.

    • D. 

      Financial transparency and disclosure.

    • E. 

      Board and management structure and processes.

  • 27. 
    What does Remuneration report consist?  (check all that aplies)
    • A. 

      What are the senior managers/directors earning from the company?

    • B. 

      Does their performance justify the remuneration?

    • C. 

      Disclosure of policy for payment

    • D. 

      Disclosure of amounts received by each

  • 28. 
    Operation of IASB (check all that aplies)?
    • A. 

      Head office in London

    • B. 

      14 members, technical expertise

    • C. 

      Issues Standards (IFRS)and interpretations

    • D. 

      IFRICs (International Financial Reporting Interpretation Committee)

    • E. 

      Standard Advisory Council - wide geographical representation

  • 29. 
    What does IAS 2 (Inventories) stand for?
    • A. 

      Lower of cost and net realizable value

    • B. 

      Costs include purchase cost, conversion cost and other costs to bring to present condition and location

    • C. 

      FIFO or average cost

    • D. 

      LIFO is permitted

  • 30. 
    In what year SEC allows foreign private issuers to report using IFRS, dropping the GAAP reconciliation requirement? 
    • A. 

      2005

    • B. 

      2007

    • C. 

      2009

  • 31. 
    What are the Barriers to International Harmonisation? (check all that aplies)
    • A. 

      Actual implementation of full Standards or all Standards may not occur.

    • B. 

      Culture

    • C. 

      USA

    • D. 

      Initial costs of implementation (management,...)

    • E. 

      Difficult to chose the enforcer of international standards

    • F. 

      Global investors

    • G. 

      Job mobility

  • 32. 
    • A. 

      SEC (Securities and Exchange Commission)

    • B. 

      ADR (American Depository Receipt)

    • C. 

      US GAAP

  • 33. 
    Is it true that ADR is Certificate of ownership of shares in Co based ouside USA?
    • A. 

      True

    • B. 

      False

  • 34. 
    What factors explain choice of listing? (check all that aplies)
    • A. 

      Size of company in domestic market.

    • B. 

      Importance of foreign sales.

    • C. 

      Importance of investment in foreign countries.

    • D. 

      Importance of foreign employees for the company.

    • E. 

      Language of the country.

  • 35. 
    What are IASB (International Accounting Standards Board) objectives? (check all that aplies)
    • A. 

      Highly quality, understandable and enforceable standards.

    • B. 

      Promote use and rigorous(strict)application.

    • C. 

      Convergence of national accounting standards and IAS to high-quality solutions.

  • 36. 
    What IAS 8 (Accounting Policies, Estimates and Errors) stands for? (check all that aplies)
    • A. 

      Importance of consistency(logicality).

    • B. 

      Change accounting policy if required by standard or give more relevant and reliable information.

    • C. 

      Restate prior period to adjust changes in policies and errors.

    • D. 

      Changes in estimates in current year`s income.

    • E. 

      If revalued must be regular.

    • F. 

      Impairment test

  • 37. 
    What is IAS 16 (Property, Plant & Equipment) stands for? (check all that aplies)
    • A. 

      Cost model or Revaluation model.

    • B. 

      If revalued must be regular.

    • C. 

      Systematic depreciation under cost model

    • D. 

      Impairment tests for loss of value (IAS 36)

    • E. 

      Disclose policies, depreciation methods and lives, acquisition, disposals, revaluation, commitments, impairments.

    • F. 

      Importance of consistency.

    • G. 

      Change accounting policy if required by standard or give more relevant and reliable information.

  • 38. 
    What does IAS 36 stand for?
    • A. 

      Property, Plant & Equipment

    • B. 

      Inventories

    • C. 

      Impairment

    • D. 

      Intangible Assets

  • 39. 
    What does IAS 38 stand for?
    • A. 

      Intangible Asset

    • B. 

      Impairment

    • C. 

      Inventories

  • 40. 
    What does IAS 38 stand for? (check all that aplies)
    • A. 

      Intangible Asset.

    • B. 

      R&D.

    • C. 

      Impairment

    • D. 

      Property, Plant & Equipment.

  • 41. 
    What does IAS 38 (R&D) stands for (check all that aplies)?
    • A. 

      Research is an expense.

    • B. 

      Development cost must be capitalized under specified condition.

    • C. 

      Some reversals allowed but not goodwill.

  • 42. 
    What does IAS 2 stand for?
    • A. 

      Inventories.

    • B. 

      Accounting Policies, Estimates and Errors.

    • C. 

      Impairment.

  • 43. 
    Is it true that IAS 38 Recognize intangible asset, whether purchased or self-created, if probable benefits and cost estimated reliable?
    • A. 

      True

    • B. 

      False

  • 44. 
    Is it true that IAS 38 recognize internally generated goodwill, brands, titles, customer list rtc.?
    • A. 

      True

    • B. 

      False

  • 45. 
    What is Flexebility stand s for?
    • A. 

      Relationship between company law and tax law.

    • B. 

      Formats of financial statement.

  • 46. 
    The UK. What does TRANSPARENCY cosist of?
    • A. 

      Notes to accounts

    • B. 

      Segmental reporting

    • C. 

      Narrative Reporting

    • D. 

      Directors` remuneration details

    • E. 

      Stricter rules on provision

    • F. 

      Change to amortization of goodwill

  • 47. 
    China. What year Deng Xiaoping allowed marked-based approach?
    • A. 

      1984

    • B. 

      1992

    • C. 

      2000

    • D. 

      1980

  • 48. 
    What does Narrative reporting in thr USA consit of?
    • A. 

      Management discussion and analysis.

    • B. 

      Market risk disclosure.

    • C. 

      Pro-forma (non-GAAP)financial statements

    • D. 

      Internal control

    • E. 

      Assumptions

    • F. 

      Process of preparing information.

  • 49. 
    USA does not permit upward revaluation?
    • A. 

      True

    • B. 

      False