Deck 4: Comparative International Financial Accounting II

Question 1

India's accounting system is of a British origin.

Answer 1

True

Question 2

Mexico's current standard setting

A) ignores social accounting reporting.
B) was originally based upon the IFRS law system
C) follows tax law.
D) is influenced by US GAAP because of NAFTA.

Answer 2

D

Question 3

Poland made a transition to a market-oriented economy using a shock therapy treatment.

Answer 3

True

Question 4

Many of Russia's soviet-style production units continue to exist with losses.

Question 5

India

A) has a government controlled standards body
B) defers accounting standards to the IASC
C) has an independent Accounting Standards Board
D) has expressed a bias to secrecy

Question 6

Thai accounting standards must be approved by the government.

Question 7

Poland has not adopted the "true and fair view" accounting principle.

Question 8

Chinese government controls the accounting regulation and auditing.

Question 9

One of the cures for the "Asian flu" problem was to decrease transparency.

Question 10

The Malaysian accounting system

A) has rules developed by FASB
B) focuses more on tax accounting than investor information needs
C) has a strong British influence
D) is more conservative than the Japanese

Question 11

The French origin of Mexico's legal system is a factor in its current accounting system values.

Question 12

Which of the following pair of countries has similar accounting system preferences?

A) United States and Czech Republic
B) Japan and Poland
C) Sweden and United Kingdom
D) Brazil and Mexico

Question 13

The Malaysian accounting system

A) has similar tax and book accounts
B) aims to provide for the information needs of investors
C) is based on a macro-economic justification
D) takes a flexible approach

Question 14

Which of the following accurately reflects Argentina's accounting?

A) Accounting standards developed by a high degree of consensus.
B) A true and fair view concept is not acceptable due to the strength of the law.
C) There is a tendency to follow a business economics approach to valuation.
D) There is little impact of inflation on accounting because the tax law dominates.

Question 15

Which of the following accurately reflects Brazilian accounting?

A) There is a significant involvement of the stock market in the standard setting process.
B) There are no significant legal requirements due to the adherence to a flexible approach to accounting.
C) There is a preference to information needs of creditors and tax authorites.
D) There is little tax and legal influence.

Question 16

Malaysia's accounting system is not of a British origin.

Question 17

The Indian accounting system has its origins in the

A) Napoleanic code law
B) Germanic
C) British
D) American

Question 18

Which of the following pair of countries has similar accounting systems?

A) Czech Republic and Australia
B) China and Indonesia
C) India and Italy
D) United Kingdom and Thailand

Question 19

Which of the following pair of countries has similar accounting systems?

A) Japan and Australia
B) India and Malaysia
C) Sweden and Czech Republic
D) Russia and Germany

Question 20

Company law is of fundamental importance to Brazil's accounting system.

Question 21

Information disclosure is constrained in developing countries where:

A) shareholders are the most important user group.
B) taxation rules influence amounts.
C) companies are financed mainly by banks, family members and government agencies.
D) the accounting profession is not well developed.

Question 22

Which of the following accurately reflects Chinese accounting?

A) There is a strong Soviet-style accounting influence.
B) The accounting system has been changed to conform with U.S. principles.
C) A more micro-oriented decision-making approach is being encouraged.
D) The Japanese system of accounting has been adopted.

Question 23

Which of the following is a significant impact on Czech Republic accounting?

A) The accession to the EU.
B) A business economics approach to accounting in the Czech Republic has resulted in widespread use of inflation-adjusted accounting.
C) The effect of tax law is minimal, because tax and book accounting are not allowed to be the same.
D) The Nordic legal tradition has had a strong impact on accounting standards and practices.

Question 24

Which of the following accurately reflects Thai accounting?

A) Only transportation companies are required to file or publish annual accounts.
B) The government has final approval on accounting regulations.
C) Independent accounting measurement approaches do not consider IAS standards.
D) It was the only Asian country which did not make any reforms after the Asian "flu".

Question 25

In Russia, accounting regulations are generally created by?

A) Private sector accountants.
B) Security Exchange (SET)
C) Ministry of Finance.
D) IASC.

Question 26

Which of the following pair of countries has similar accounting systems?

A) United States and Switzerland
B) Czech Republic and Poland
C) Brazil and Italy
D) Indonesia and Germany

Question 27

Which of the following accurately reflects Chinese accounting?

A) The accounting equation has replaced the communist fund accounting approach in the standard setting process.
B) There are no significant legal requirements due to the adherence to a flexible approach to accounting.
C) The only purpose of accounting is national macroeconomic control.
D) Due to previous state control, there is an abundance of accountants.

Question 28

Which country implemented a shock therapy approach to a market-oriented economy?

A) Thailand
B) China
C) Italy
D) Poland