Deck 3: International Accounting

Question 1

Which of the following concepts is contained in the FASB's conceptual framework but not in the IASC's

A)Expense
B)Comprehensive income
C)Asset
D)Liability

Answer 1

B

Question 2

Which of the following is seen as a pervasive difference between IASB's and FASB's Conceptual Frameworks?

A)Definition of elements
B)Number of qualitative characteristics
C)Scope of authority
D)Level of detail

Answer 2

D

Question 3

How many members serve on the IASB?

A)14
B)18
C)20
D)22

Answer 3

A

Question 4

Under the IASB's conceptual framework,a decrease in economic benefit that results in a decrease in equity is termed as aan):

A)Distributions to owners
B)Loss of economic benefit
C)Comprehensive loss
D)Expense

Question 5

Which of the following is not an element of financial statements contained in the IASB's Framework for the Preparation of Financial Statements?

A)Gain
B)Income
C)Expense
D)Asset

Question 6

What is the name given to the agreement between the FASB and IASC to harmonize accounting standards?

A)The Norwalk Agreement
B)The London agreement
C)The Washington D C agreement
D)The Paris Accords

Question 7

What is the current acronym for the body most responsible for issuing international accounting standards?

A)IASB
B)SEC
C)FASB
D)IASC

Question 8

How many member serve on the Accounting Standards Advisory Forum?

A)12
B)14
C)20
D)22

Question 9

Which of the following is not an environmental factor that could impact on the development of a country's accounting system?

A)Level of education\
B)Political system
C)Geographic location
D)Legal system

Question 10

Which of the following bodies has the responsibility to issue international financial reporting standards IFRS)?

A)The International Financial Reporting Interpretations Committee
B)The International Standards Advisory Council
C)The IASC Foundation
D)The International Accounting Standards Board

Question 11

Which of the following is not a use of international accounting standards?

A)As national requirements.
B)As standards to be violated to improve intercountry comparability.
C)As an international benchmark for those countries that develop their own requirements.
D)By regulatory authorities for domestic and foreign companies

Question 12

Under IFRS,the monetary unit assumption

A)Is a component of the conceptual framework
B)Requires all companies to use the Euro as their reporting currency
C)Requires companies to use fair value to report all assets
D)All of these answer choices are correct

Question 13

Which of the following is an element of financial statements under the IASB's conceptual framework?

A)Losses
B)Comprehensive income
C)Investment by owners
D)Equity

Question 14

What is the title of the form that foreign companies have used to reconcile their financial statements to U.S.GAAP?

A)Form 10-K
B)Form 10-Q
C)Form SX
D)Form20-F

Question 15

How does the IASC enforce its standards?

A)Through,the International Organization of Securities Commission
B)Through the concept of best endeavors
C)Through the Securities and Exchange Commission
D)Through the Financial Accounting Standards Board

Question 16

How many trustees serve on the IASC Foundation?

A)16
B)18
C)20
D)22

Question 17

Which of the following is not an effect of the IFRS for SMEs?

A)It omits topics in IFRS that are not relevant to SMEs
B)It allows the easier option when IFRS permits accounting policy choices
C)It simplifies many principles for recognizing and measuring assets,liabilities,income,and expenses
D)It requires significantly greater disclosures

Question 18

Under IFRS

A)The monetary unit assumption is used,however since every country has its own currency the unit of measure will vary depending on the country in which the company is incorporated
B)The existing conceptual framework is very similar to the conceptual framework under GAAP
C)Companies may apply fair value to natural resources
D)All of these answer choices are correct

Question 19

Which of the following is not a qualitative characteristic contained in the IASB's Framework for the Preparation of Financial Statements?

A)Understandability
B)Timeliness
C)Relevance
D)Reliability

Question 20

Which of the following statements is true regarding the conceptual frameworks developed by FASB and IASB?

A)The economic entity assumption is not part of either framework
B)The monetary unit assumption is part of each framework and the U.S.dollar is established as the common unit of currency.
C)Both have similar measurement principles based on historical cost and fair value.
D)The conceptual frameworks underlying U.S.GAAP and IFRS are dissimilar.

Question 21

Companies that use IFRS:

A)Are allowed to report property,plant,and equipment and natural resources at fair value on their financial statements
B)May only use historical cost as the measurement basis in financial reporting
C)Are required to report all their assets on the statement of financial position at fair value
D)May utilize the framework in a statement of concepts to estimate fair values when market data are not available.

Question 22

With respect to the IASB new conceptual framework project:

A)The framework will not address elements of financial statements
B)Work is being conducted to produce standards without the discussion paper step
C)Work is being conducted to result in a discussion paper covering several identified areas
D)Work is being conducted with the FASB.

Question 23

Under IFRS

A)Companies are not allowed to apply fair value to natural resources
B)The monetary unit assumption is not used since every country has its own unit of measure
C)The existing conceptual framework is very similar to the conceptual framework under GAAP
D)All of these answer choices are correct.

Question 24

Which of the following statements is false?

A)Under IFRS,there are the same number of financial statement elements as in GAAP
B)The FASB and IASB are no longer working on a joint conceptual framework project.
C)The monetary unit assumption is used under IFRS.
D)Under IFRS,companies may use fair value for property,plant,and equipment.