Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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1.
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Accounting under International Financial Reporting Standards tends to
a. | lead to lower reported earnings. | b. | lead to higher reported
earnings. | c. | be viewed as undesirable by most multinational corporations. | d. | not be supported by
the Big U.S. accounting firms |
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2.
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Some state that accounting standards are either “rules-based” or
“principles-based.” In general, International Financial Reporting Standards are said to
be:
a. | Rules based | b. | Principles based | c. | Both rules based and
principles based | d. | Neither rules based nor principles based |
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3.
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Which of the following statements is false? The Norwalk
agreement:
a. | was not supported by the SEC | b. | was a memorandum of understanding between the
FASB and the IASC | c. | is to be updated to lay out a plan for one set
of accounting standards by 2013 | d. | was to lead to accounting standards that could
be used in domestic and cross-border financial reporting. |
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4.
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A recently released SEC proposal could require mandatory use of IFRS’s by
large accelerated filers by the year
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5.
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The SEC has identified issues that need to be addressed before mandatory
adoption of IFRSs. Which of the following is not one of those issues?
a. | Improvements will be needed in the international Financial Reporting Standards.
| b. | Issues on education and training on IFRSs in the United States will have to be
addressed. | c. | Funding and accountability issues of the International Accounting Standards Committee
Foundation will need to be addressed. | d. | The method of integration of the FASB into the
IASC will need to be defined. |
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6.
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Under International Financial Accounting Standards, the overriding requirement
is for the financial statements to
a. | give a fair presentation. | b. | be prepared in accordance with
GAAP. | c. | provide an accurate presentation. | d. | be audited. |
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7.
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In 1966, a proposal to create an Accountants International Study Group is agreed
to by professional accountancy bodies in three nations to develop comparative studies of accounting
and auditing practices. Which of the following countries was not one of those three?
a. | United Kingdom | b. | Canada | c. | United
States | d. | Japan |
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8.
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The International Accounting Standards Committee (IASC) had its start
in:
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9.
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Which of the following statements are true? The principal
responsibilities of the IASB are to: | A. | Develop and issue International Financial Reporting Standards and Exposure
Drafts, | | B. | Approve
Interpretations developed by the International Financial Reporting Interpretations Committee
(IFRIC). | | |
a. | A only | b. | B only | c. | Both A and
B. | d. | Neither A nor B. |
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10.
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The Standards Advisory Council (SAC) is a part of the IASB structure. Which of
the following statements is false concerning SAC?
a. | advises the IASB on agenda decisions and priorities in the IASB's
work, | b. | Under the IASC Foundation Constitution, SAC must have 40 or more
members | c. | informs the IASB of the views of the organisations and individuals on the Council on
major standard-setting projects | d. | SAC has an independent chairman appointed by
the Trustees |
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