MULTIPLE CHOICE:
1. All of the following are reasons for international accountingdiversity:
A) the culture of a nation
B) differences in the purpose of the financial information
C) the nature of a country's financing system
D) the institutional structures of a country
E) taxes
2. The culture of a country determines the nature of a country'sfinancing system. What type of funding system leads to what kind ofaccounting?
A) A system of external financing of weak capital equity leadsto an accounting system for external shareholders.
B) An external financing system of weak capital equity leads toan accounting system for individual owners.
C) An external financing system of strong capital equity leadsto an accounting system for external shareholders.
D) An external financing system of strong capital equity leadsto a system of accounting for taxes.
E) A strong external equity equity financing system leads to anaccounting system for creditors.
3. By April 2001, what is the name of the organizationresponsible for setting international accounting standards?
A) International Accounting Standards Committee
B) International Organization of securities Commissions
C) International Accounting Standards Board
D) European Union
E) World Trade Organization
4. One of the FASB's convergence initiatives was intended toeliminate a variety of individual differences between IFRS and USGAAP. This resulted in changes in all of the following, exceptfor:
A) earnings per share.
B) inventory costs.
C) accounting changes.
D) research and development.
E) asset exchanges.
5. Diversity in accounting practices causes the following problems, except:A) difficulty in accessing foreign markets.B) a lower cost of capital.C) the lack of comparability of financial statements between companies from different countries.D) higher costs in the preparation of consolidated financial statements by companies with operations abroad.E) difficulty for investors to determine attractive acquisitions in foreign countries.
MULTIPLE CHOICE:
1. All of the following are reasons for international accountingdiversity:
A) the culture of a nation
B) differences in the purpose of the financial information
C) the nature of a country's financing system
D) the institutional structures of a country
E) taxes
2. The culture of a country determines the nature of a country'sfinancing system. What type of funding system leads to what kind ofaccounting?
A) A system of external financing of weak capital equity leadsto an accounting system for external shareholders.
B) An external financing system of weak capital equity leads toan accounting system for individual owners.
C) An external financing system of strong capital equity leadsto an accounting system for external shareholders.
D) An external financing system of strong capital equity leadsto a system of accounting for taxes.
E) A strong external equity equity financing system leads to anaccounting system for creditors.
3. By April 2001, what is the name of the organizationresponsible for setting international accounting standards?
A) International Accounting Standards Committee
B) International Organization of securities Commissions
C) International Accounting Standards Board
D) European Union
E) World Trade Organization
4. One of the FASB's convergence initiatives was intended toeliminate a variety of individual differences between IFRS and USGAAP. This resulted in changes in all of the following, exceptfor:
A) earnings per share.
B) inventory costs.
C) accounting changes.
D) research and development.
E) asset exchanges.
5. Diversity in accounting practices causes the following problems, except:A) difficulty in accessing foreign markets.B) a lower cost of capital.C) the lack of comparability of financial statements between companies from different countries.D) higher costs in the preparation of consolidated financial statements by companies with operations abroad.E) difficulty for investors to determine attractive acquisitions in foreign countries.
