International Accounting 4E Timothy DoupnikHector Perera Test Bank Chapter 002.docx

1、International Accounting 4E Timothy Doupnik Hector Perera Test Bank Chapter 002Chapter 02Worldwide Accounting DiversityMultiple Choice Questions1.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 reserveB.Share p

2、remium accountC.Own shares heldD.Called-up share capital2.What does harmonization mean in the context of international accounting?A.The process of combining the financial statements of foreign subsidiaries into the parent companys financial statementsB.The process of reducing accounting differences

3、across countriesC.Disclosing the accounting methods used in preparing the financial statementsD.Assessing the exposure resulting from inadequate internal controls3.It is generally believed that the 1997 financial crisis in East Asia was partly due to accounting factors in that part of the world. Whi

4、ch of the following accounting values was lacking in that part of the world and thereby contributed to the crisis?A.ProfessionalismB.Statutory controlC.UniformityD.Transparency4.Which of the following is NOT a problem caused by accounting diversity?A.Lack of qualified international auditorsB.Prepara

5、tion of consolidated financial statementsC.Access to foreign capital marketsD.Comparability of financial statements5.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

6、and accounting lawB.Rules and regulationsC.Written law and unwritten lawD.Common law and code law6.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 conserv

7、ative.7.What is likely to be the source of accounting standards in common law countries?A.Tax lawB.Non-government entities such as the FASBC.Federal and local legislaturesD.The International Accounting Standards Board8.What is the likely result when accounting rules are left up to professional assoc

8、iations 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 f

9、or 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 o

10、f 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 countrys business financing comes from families, banks, and the gover

11、nment, what should we expect in terms of information disclosure to the public?A.Relatively little disclosure because the public isnt a major factorB.A great deal of disclosure because it will be the only way for interested parties to learn about the companyC.Complete openness of accounting recordsD.

12、No disclosure at all12.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 isnt trustworthy.B.Businesses rely heavily on financing through issuance of stock to the public.C.The American populace is b

13、etter 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 N

14、OT 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 meaningles

15、s 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 doesnt matter which valuation ba

16、sis 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 t

17、ax 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 AmericaB.JapanC.GermanyD.France16.In the Nobes classification of ac

18、counting 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 countr

19、y.B.religious differences across countries.C.the population of the country.D.the strength of the countrys 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 systemB

20、.The accounting system of countries that dominate their cultureC.The size of their capital marketD.The strength of their tax code19.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 wh

21、ich 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

22、 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 distanc

23、e.23.What term is used to refer to a cultural aversion to ambiguous situations?A.Uncertainty avoidanceB.MasculinityC.Power distanceD.Individualism24.A cultural preference for accounting systems that rely on compliance with legal requirements is called:A.professionalism.B.uniformity.C.statutory contr

24、ol.D.optimism.25.Countries such as the U.S. tend to value self-regulation of accounting. What term is used to define this subculture?A.UniformityB.FlexibilityC.ConservatismD.Professionalism26.What does transparency mean in accounting?A.An emphasis on confidentialityB.Restricted disclosure of account

25、ing informationC.Flexibility in the application of accounting standardsD.Openness of accounting information27.What term is used to describe accounting standards that encourage risk-taking in financial reporting?A.OptimismB.ConservatismC.ProfessionalismD.Transparency28.In Grays framework for accounti

26、ng system development, which of the following countries tends to have a relatively high degree of transparency in their companies financial statements?A.GermanyB.SwitzerlandC.United KingdomD.Saudi Arabia29.In Grays framework for accounting system development, which of the following countries tends t

27、o show a relatively high preference for conservative accounting standards?A.NorwayB.United KingdomC.United States of AmericaD.Japan30.In Grays framework for accounting system development, optimism is a value of accounting standards that would most likely be found in _.A.JapanB.AustraliaC.MexicoD.Brazil31.In Grays framework for ac