Deck 3: Comparative International Financial Accounting I

Question 1

Swiss accounting is among the most transparent in the world today.

Answer 1

False

Question 2

The British accounting system

A) is based on a macro-economic justification
B) takes a flexible approach
C) has similar tax and book accounts
D) lets security market needs dictate accounting policy

Answer 2

B

Question 3

A major business Japanese feature that influences accounting is the keiretsu.

Answer 3

True

Question 4

The basis for French accounting has had a underlying objective of more effective national economic planning.

Question 5

Which of the following accurately reflects Dutch accounting?

A) Accounting standards tend to be more detailed in the law than is the case in Germany and France.
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 social reporting for employees since tax law dominates.

Question 6

Traditionally, Sweden relies on central regulatory control and excludes the accounting profession's involvement.

Question 7

The Netherlands is famous for its business economics approach to accounting.

Question 8

Company law in the Netherlands

A) is based upon English common law.
B) ignores social accounting reporting.
C) was originally based upon the Roman law system
D) follows tax law.

Question 9

The Australian accounting system

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

Question 10

The securities markets are the dominant influence on accounting regulation in the United States.

Question 11

In Germany, the financial statement accounts form the basis for the tax accounts.

Question 12

The reliability of information to business decisions is paramount subject constraint of reliability in the United States.

Question 13

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

A) United States and Australia
B) Japan and Switzerland
C) Sweden and Italy
D) United Kingdom and Germany

Question 14

Italy has quickly adopted EU directives in order to support major family or state-owned enterprises.

Question 15

The SEC acts in a supervisory capacity over FASB

A) never
B) rarely
C) frequently
D) always

Question 16

If interested parties believe a company reporting is not complying with the Netherlands law, they complain to

A) NIVRA
B) the World Court
C) the European Union
D) the Enterprise Chamber of the Court of Justice

Question 17

Japanese prepare an additional set financial statements in English.

Question 18

Which of the following accurately reflects Swedish accounting?

A) There is a tradition of involvement of the accounting profession in the standard setting process.
B) There are no significant legal requirements due to the adherence to a flexible approach to accounting.
C) Due to the heavy social welfare influence in Sweden, taxes are collected aggressively and tax breaks are not allowed.
D) There is little tax and legal influence.

Question 19

The British accounting system

A) does not follow a company law regime
B) has its rules created by government agency
C) is not going to adopt the IFRS because of the British pound
D) has its rules created by a self-regulatory organization

Question 20

Which of the following accurately reflects Swedish accounting?

A) It has a rather conservative approach to income measurement.
B) There are no significant legal requirements due to the adherence to a flexible approach to accounting.
C) Due to the heavy social welfare influence in Sweden, taxes are collected aggressively to address microeconomic issues.
D) There is little company law influence.

Question 21

Which of the following countries prepares statements according to US GAAP?

A) France
B) Japan
C) Netherlands
D) Italy

Question 22

Which of the following accurately reflects Swiss accounting?

A) Secret reserves are an accounting issue.
B) Accounting standards are set by a government body.
C) The true and fair view has been adopted as the primary factor to consider in accounting measurement.
D) There are no significant legal requirements due to the adherence to a flexible approach to accounting.

Question 23

Which of the following accurately reflects Italian accounting?

A) There is a strong emphasis on shareholders.
B) The interests of government and the taxation authorities take precedence over shareholders.
C) Uniformity for planning purposes is emphasized.
D) A flexible approach to valuation.

Question 24

Which of the following accurately reflects French accounting?

A) The French have adopted more of an Anglo-Saxon approach to accounting.
B) A business economics approach to accounting in France has resulted in widespread use of current value accounting.
C) The effect of tax law is minimal, because tax and book accounting are not allowed to be the same.
D) The legal tradition in France has had a strong impact on accounting standards and practices.

Question 25

Which of the following accurately reflects German accounting?

A) There is a tradition of involvement of the accounting profession in the standard setting process.
B) There are no significant legal requirements due to the adherence to a flexible approach to accounting.
C) Due to the heavy social welfare influence in Sweden, taxes are collected aggressively and tax breaks are not allowed.
D) Tax rules tend to dominate decisions on accounting issues.

Question 26

To which country can the origins of double-entry bookkeeping be traced?

A) Greece
B) Netherlands
C) United Kingdom
D) Italy

Question 27

Which of the following based their accounting system on code law?

A) United Kingdom
B) France
C) Japan
D) Sweden

Question 28

Which of the following accurately reflects Japanese accounting?

A) On the authority and enforcement measures, the Japanese are professional and flexible.
B) The Japanese lean to statutory control and professionalism.
C) The Japanese have been heavily influenced by the Germans but not the Americans.
D) The Ministry of Justice enforces the Companies Act and the Ministry of Finance enforces the Securities and Exchange Act.

Question 29

Which of the following accurately reflects Swiss accounting?

A) There is fairly significant professional influence.
B) Legal requirements are fairly extensive in comparison with the Germans.
C) The true and fair view has been adopted as the primary factor to consider in accounting measurement.
D) The focus is on creditors.

Question 30

Which of the following accurately reflects Swiss accounting?

A) Only railways are required to file or publish annual accounts.
B) Legal requirements are fairly extensive in comparison with the Germans.
C) The true and fair view has been adopted as the primary factor to consider in accounting measurement.
D) Swiss accounting is among the most conservative in Europe.

Question 31

In Japanese accounting,

A) all companies are required to follow the reporting requirements of the Securities and Exchange Law.
B) corporate tax rules are a major source of influence on income measurement practices.
C) the Securities and Exchange Law was developed by the British.
D) reserves are not permitted.

Question 32

Which of the following accurately reflects French accounting?

A) Due to their strong Latin cultural tradition, the French tend to be more judgmental than legalistic.
B) According to the authority and enforcement scales in Gray's model, the French would lean to flexibility and professionalism.
C) According to the measurement and disclosure scales in Gray's model, the French would lean to secrecy and conservatism.
D) The true and fair view of the 4th Directive was already a part of French tradition.

Question 33

Which of the following accurately reflects Japanese accounting?

A) Accounting standards tend to be more detailed in the law than is the case in Germany and France.
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) Tax law is a major influence as corporate tax returns must be base on the annual accounts approved by shareholders.

Question 34

Which of the following accurately reflects Japanese accounting?

A). There are no significant legal requirements due to the adherence to a flexible approach to accounting.
B) Accounting standards are set by a government body.
C) According to the measurement and disclosure scales in Gray's model, the Japanese would lean to secrecy
D) Secret reserves are an accounting issue

Question 35

Which of the following accurately reflects German accounting?

A) There is fairly significant professional influence.
B) The focus is on creditors.
C) Legal requirements are fairly lax in comparison with the Swiss.
D) The true and fair view has been adopted as the primary factor to consider in accounting measurement.