Deck 12: International Accounting

Question 1

Which of the following is NOT a level that can be used to define international accounting?

A)Company.
B)Comparative.
C)Supranational.
D)None of the above,i.e.they are all levels of international accounting.

Answer 1

D

Question 2

Which of the following elements or standards has been raised as a significant problem with the adoption of IFRS in certain countries?

A)Fair value accounting.
B)Profit focus.
C)Consolidation requirements.
D)All of the above.

Answer 2

D

Question 3

The SEC allows non-US companies listed on a US stock exchange to report using:

A)International Accounting Standards,with reconciliation to US-GAAP.
B)International Accounting Standards.
C)Their home country's standards.
D)None of the above,they must use US-GAAP only.

Answer 3

B

Question 4

The international Accounting Standards Board's objective for International Accounting Standards would be best described as:

A)Harmonisation.
B)Convergence.
C)Adoption.
D)Adaption.

Question 5

With harmonisation of accounting practices globally:

A)Environmental and cultural factors still lead to diversity in practice.
B)Financial reporting is becoming simpler.
C)International accounting differences have all but disappeared.
D)All of the above.

Question 6

The work of Hofstede has been very important to the study of international accounting,which of the following was NOT one of his cultural characteristics used to describe cultures around the world?

A)Organised versus laid-back.
B)Individualism versus Collectivism.
C)Masculinity versus Femininity.
D)None of the above,i.e.they are all cultural characteristics.

Question 7

The accounting regulation is heavily influenced by the legal system in which it operates.In Australia laws are based on which legal system?

A)Common Law.
B)Codified Roman Law.
C)Civil Law.
D)Case Law.

Question 8

Gray adapted Hofstede's categories for accounting,which of the following is not one of his four accounting values?

A)Secrecy versus Transparency.
B)Conservatism versus Optimism.
C)Uniformity versus Flexibility.
D)Short-term versus Long-term Orientation.

Question 9

In countries where finance is mainly provided by banks we would expect:

A)Greater emphasis on the balance sheet.
B)More public disclosure.
C)More lenient bankruptcy laws.
D)All of the above.

Question 10

One of Gray's accounting values is Professionalism versus Statutory Control.Which country would you expect to be closest to the Statutory Control end of the spectrum?

A)France.
B)UK.
C)Australia.
D)USA.

Question 11

China's acceptance of international accounting standards would be best described as:

A)Harmonisation.
B)Convergence.
C)Adoption.
D)Indifference.

Question 12

One significant barrier to the adoption of international accounting standards in Islamic countries has been:

A)Refusal to compartmentalise religious and secular life.
B)The requirement to pay zakat (a religious levy).
C)The prohibition on charging interest.
D)All of the above.

Question 13

Multinational entities

A)Operate independently of any national legal framework.
B)Use IFRS exclusively.
C)Are largely unaffected by the culture of individual countries.
D)None of the above.

Question 14

Transfer pricing has been identified as a major problem for multi-national entities.This refers to:

A)The pricing of goods and services exchanged within a corporate group.
B)Paying local workers less than expatriate employees.
C)Setting up parent entities in tax havens.
D)Manufacturing cheaply in the third world to sell at high profit in the first world.

Question 15

In Australia IFRSs are required to be used by:

A)All listed entities.
B)Consolidated entities only.
C)All reporting entities.
D)Multinational Entities.

Question 16

Which of the following is NOT an advantage to IFRS adoption?

A)It makes financial statements more comparable.
B)It makes accounting standard development more flexible.
C)It is a cost effective way to have a comprehensive set of standards.
D)None of the above,i.e.they are all advantages.

Question 17

To what does International Accounting refer?

A)Comparison of accounting practices between countries.
B)Accounting for international transactions.
C)Descriptions of accounting practices in different countries.
D)All of the above.

Question 18

Which of the following is likely to influence accounting systems at a national level?

A)Political system.
B)Capital market structures.
C)Tax system.
D)All of the above.

Question 19

Which of the following is NOT considered a challenge for international business operations when faced with accounting diversity?

A)It reduces access to international investments.
B)National accounting regimes are inferior to international accounting.
C)It is costly to restate financial statements.
D)None of the above,i.e.they are all a challenge.