RLGA01H3 Lecture Notes - Vedas, Old Texts
I do not think that maximin gives us a good reasons to choose Rawls' two principles of justice compared to the other theories. Rawls idea of raises many questions. He thinks that inequality can be justified only by the benefits for the least advantaged. However, I acknowledged the fact that Nozick argued that if things are made by a certain group of people, they have the rights to do whatever they want with it. With that being said, trying to favor the least advantage group are unjust because it makes some advantaged people work for the least advantaged group in order to "balance" out. This is kind of unfair to the advantaged group of people. They might have been working it through time and effort and the other group might just sit there and wait for them to distribute the resources. Thus, the U.S would not be more if we followed the difference principle since the differential principle gives expression to the idea that natural endowments are undeserved. The fact that citizens have different talents and abilities can be used to make everyone better off (according to Rawls). Instead, in reality, if a society really applies that principle, people will rely on it and becomes inefficient from thinking, "oh, if I don't put much effort into this, it's okay" since the advantaged group will covers the rest.
Do you agree to this? Please state your reasons.
1 Which of the following is an advantage of having a single set of accounting standards used worldwide?
A. Reduced accounting costs for multinational corporations
B. Increased power of the FASB
C. Reduced number of multinational corporations on the NYSE
D. Increased diversity of accounting methods used by multinational corporations
2 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.
3 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.
4Historical 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 ,
so it doesn't matter which valuation basis is used.
5Which of the following statements is true about accounting convergence?
A. Convergence is a synonym for harmonization.
B. Convergence is the opposite of standardization.
C. Convergence, unlike harmonization, takes place over a period of time.
D. Convergence means developing high-quality standards in partnership with national standards.
6 Which of the following statements is believed to be true about accounting convergence
by proponents of convergence?
A. Convergence would not affect the feelings of nationalism.
B. Convergence is desirable because there is very little difference among capital markets
in different countries.
C. Convergence would help to raise the quality of accounting practices internationally.
D. None of the above statements is true.
7Why does the IASB believe that a principles-based approach to standard setting
is superior to a rules-based approach?
A. Detailed guidance or rules encourage accountants to look for ways around the rules
rather than trying to provide useful information.
B. Principles-based standard setting is less costly to undertake than rules
-based standard formulation.
C. It is desirable to have all corporations in all countries using the same accounting practice.
D. A conceptual framework for standard setting has demonstrated to encourage
the greatest economic development.
8 If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:
A. annual revaluations must be performed on each class of assets.
B. it must update the valuation so that the balance sheet represents fair value
on the balance sheet date.
C. appraisals must be performed by an official of the IASB.
D. the depreciated replacement cost must be used as the fair value of the fixed asset.
TRUE OR FALSE
____ 2. The materiality of an amount can be adequately assessed through the use of quantitative thresholds.
____3. The calculation of proforma earnings typically involves a departure from generally accepted accounting principles.
____4. The Securities and Exchange Commission provides recommendations to investors regarding which companies represent the safest investments.
____5. Adoption of a principles-based accounting standard setting system in the United Statescould make it more difficult for financial statement preparers and auditors to defend themselves in lawsuits related to financial statements.
____6.. Managers subject to an earnings-based bonus plan typically manage earnings downward if the reported earnings are substantially in excess of the maximum bonus level.
____7. Company earnings are considered to be of higher quality when management chooses accounting measurement rules that recognize revenues sooner rather than later, but that delay the recognition of expenses.
____8. Most managers of publicly traded companies prefer an earnings trend line that rises very steeply.
____9. The Financial Accounting Standards Board currently has no rules governing the recognition of large restructuring charges.
____10. A company with a large number of diverse operating units is well suited to earnings management.