Solved by verified expert :12.
In countries such as the
U.S., there is great demand for public disclosure of accounting information.
What is the reason for this?
A.
Corporate management isn’t trustworthy.
B.
Businesses rely heavily on financing through issuance of stock
to the public.
C.
The American populace is better able to read financial
statements than people in other countries.
D.
U.S. government officials are generally members of corporate
boards of directors and can get all the information they require.
13.
Historical cost is the
primary basis for asset valuation under U.S. GAAP. Why is historical cost NOT
as important in the accounting systems of Latin America as in the U.S.?
A.
Historical costs are too difficult to calculate in the
currencies used in Central and South America.
B.
The countries of Latin America have experienced very high
rates of inflation, which would make historical costs meaningless to
readers of financial statements.
C.
There is very little foreign direct investment in the
countries of Latin America, so few assets need to be accounted for.
D.
In Latin America, asset prices are very stable, making
historical costs equal to replacement costs, so it doesn’t matter which
valuation basis is used.
14.
In the United States,
conformity between presentation of the financial statements and the tax
statements is required only for:
A.
goodwill.
B.
depreciation.
C.
gains or losses on securities.
D.
the use of the LIFO inventory cost flow assumption.
15.
In some countries,
financial accounting and tax accounting are so closely related that there is
very little need to account for deferred income taxes. Which of the following
countries has a financial accounting system that is most different from its
tax laws?
A.
United States of America
B.
Japan
C.
Germany
D.
France
16.
In the Nobes
classification of accounting systems, micro-based accounting systems are
oriented toward:
A.
government economics.
B.
business practices.
C.
tax laws.
D.
code law.
17.
According to the
research of Christopher Nobes, the most relevant factor in determining the
purpose of financial reporting is:
A.
the financing system of the country.
B.
religious differences across countries.
C.
the population of the country.
D.
the strength of the country’s accounting profession.
18.
According to the
research of Christopher Nobes, what is the primary determinant of the
accounting systems in developing countries?
A.
The nature of their financing system
B.
The accounting system of countries that dominate their culture
C.
The size of their capital market
D.
The strength of their tax code
19.
The “Fair
Presentation/Full Disclosure Model” is a classification scheme used
by:
A.
Germany.
B.
Japan.
C.
the United States and the United Kingdom.
D.
Brazil.
20.
The extent to which
hierarchy and unequal authority distribution in institutions and
organizations are accepted within a culture is referred to as:
A.
uncertainty avoidance.
B.
masculinity.
C.
individualism.
D.
power distance.
21.
A cultural preference
for a loosely knit social fabric rather than a tightly knit social fabric is
referred to as:
A.
uncertainty avoidance.
B.
masculinity.
C.
individualism.
D.
power distance.
22.
A cultural emphasis on
values of performance and achievement rather than values of relationships,
caring, and nurturing is referred to as:
A.
uncertainty avoidance.
B.
masculinity.
C.
individualism.
D.
power distance.
