Solved by verified expert :1.
What is the equivalent
of the common stock account on a U.S. balance sheet on the balance sheet of a
British company?
A.
Capital redemption reserve
B.
Share premium account
C.
Own shares held
D.
Called-up share capital
2.
What does
“harmonization” mean in the context of international
accounting?
A.
The process of combining the financial statements of foreign
subsidiaries into the parent company’s financial statements
B.
The process of reducing accounting differences across
countries
C.
Disclosing the accounting methods used in preparing the
financial statements
D.
Assessing the exposure resulting from inadequate internal
controls
3.
It is generally believed
that the 1997 financial crisis in East Asia was partly due to accounting
factors in that part of the world. Which of the following accounting values
was lacking in that part of the world and thereby contributed to the crisis?
A.
Professionalism
B.
Statutory control
C.
Uniformity
D.
Transparency
4.
Which of the following
is NOT a problem caused by accounting diversity?
A.
Lack of qualified international auditors
B.
Preparation of consolidated financial statements
C.
Access to foreign capital markets
D.
Comparability of financial statements
5.
Differences in legal
systems used in various countries have been cited as one reason for diversity
in accounting practices. What are the major types of legal systems?
A.
Commercial law and accounting law
B.
Rules and regulations
C.
Written law and unwritten law
D.
Common law and code law
6.
The accounting standards
in code law countries tend to be:
A.
very detailed.
B.
formulated by organizations such as the FASB.
C.
stated generally without much guidance on accounting
procedures.
D.
very conservative.
7.
What is likely to be the
source of accounting standards in common law countries?
A.
Tax law
B.
Non-government entities such as the FASB
C.
Federal and local legislatures
D.
The International Accounting Standards Board
8.
What is the likely
result when accounting rules are left up to professional associations rather
than being legislated by governmental bodies?
A.
Very general accounting rules are created, as in code law
countries.
B.
Very detailed rules for practice are created, as in common law
countries.
C.
Very general accounting rules are created, as in common law countries.
D.
Very detailed rules for practice are created, as in code law
countries.
9.
Relative to accounting
standards in countries such as Germany, whose accounting laws are only 47
pages long, accounting practice in the U.S. is often described as being
subject to:
A.
standards overload.
B.
standards minimization.
C.
the optimal amount of accounting regulation.
D.
ideal accounting standards.
10.
In code law countries
such as Germany, France, and Japan, tax law and accounting standards tend to
be:
A.
unrelated.
B.
very different.
C.
general.
D.
detail oriented.
11.
If most of a country’s
business financing comes from families, banks, and the government, what
should we expect in terms of information disclosure to the public?
A.
Relatively little disclosure because the public isn’t a major
factor
B.
A great deal of disclosure because it will be the only way for
interested parties to learn about the company
C.
Complete openness of accounting records
D.
No disclosure at all
