Filters
Question type
Study Flashcards

Which one of the following is not a background requirement for any IASB members?


A) Audit.
B) Tax.
C) Financial statement preparation.
D) Academia.
E) Financial statement user.

F) B) and C)
G) A) and B)

Correct Answer

verifed

verified

Which of the following statements is false regarding a country's legal system?


A) The two major types of legal systems are common law and codified Roman law.
B) Common law originated in the Roman jus civile.
C) Code law countries tend to have more statutes governing a wider range of human activity.
D) Accounting law is rather general in code law countries.
E) A nongovernmental organization is more likely to develop in a common law country than in a code law country.

F) D) and E)
G) C) and E)

Correct Answer

verifed

verified

A company incurs research and development costs of $200,000 in 2013 of which $50,000 of these costs relate to development activities because certain criteria have been met which suggest that an intangible asset has been created. What amount should be recognized as research and development expense in 2013 using U.S. GAAP?


A) $50,000.
B) $150,000.
C) $200,000.
D) $0.
E) $250,000.

F) All of the above
G) B) and C)

Correct Answer

verifed

verified

Which of the following is not a way for a country to use IFRS?


A) Require foreign companies listed on that country's stock exchange to use IFRS for consolidated financial statements.
B) Allow foreign companies listed on that country's stock exchange to use IFRS.
C) Allow that country's companies listed on its stock exchange to use IFRS.
D) Adopt IFRS as that country's national GAAP.
E) All of these are ways a country can use IFRS.

F) A) and D)
G) C) and D)

Correct Answer

verifed

verified

A company sells a building to a bank in 2013 at a gain of $100,000 and immediately leases the building back for period of five years. The lease is accounted for as an operating lease. The building was originally purchased for $200,000 and currently had a book value of $50,000 at the date of the sale. As a result of the sale and leaseback transaction in 2013, what is the difference between income using U.S. GAAP and IFRS in 2014?


A) $0.
B) U.S. GAAP income is $20,000 higher.
C) IFRS income is $80,000 lower.
D) IFRS income is $60,000 lower.
E) IFRS income is $80,000 higher.

F) A) and D)
G) A) and B)

Correct Answer

verifed

verified

In countries where there is less pressure for public accountability and information disclosure:


A) information needs can be satisfied by requesting information from internal company sources.
B) public offerings of stock shares are the primary source of financing for companies.
C) accounting information is prepared to meet the needs of taxing authorities.
D) accounting standards emphasize accounting for high inflation situations.
E) the accounting focus is on recent market economy reforms.

F) A) and B)
G) B) and E)

Correct Answer

verifed

verified

What is meant by harmonization of accounting standards?

Correct Answer

verifed

verified

Harmonization is the process of reducing...

View Answer

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?


A) Inventory valuation.
B) Capitalizing development costs.
C) Classifying deferred taxes as current or noncurrent.
D) Acquisition value for a subsidiary.
E) Liability for restructuring charges.

F) A) and B)
G) B) and C)

Correct Answer

verifed

verified

A U.S. company has many foreign subsidiaries and wants to convert its consolidated financial statements from U.S. GAAP to IFRS. Which of the following items is not one of the likely accounting issues to resolve for the opening IFRS balance sheet?


A) Measuring asset impairment.
B) Classifying extraordinary items.
C) Sale and leaseback gain recognition.
D) Measuring salaries expense.
E) Prior service cost recognition for pension amendments.

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

The IASB and FASB are working on several joint projects. Which of the following is not a topic of the Revenue Recognition Project?


A) Eliminate inconsistencies in existing literature.
B) Cash flow presentation of revenue.
C) Business models issues for revenue recognition.
D) Conceptual basis as framework for future issues of revenue recognition.
E) Contract-based revenue recognition.

F) A) and D)
G) All of the above

Correct Answer

verifed

verified

The following information pertains to inventory held by a company on December 31, 2013. The following information pertains to inventory held by a company on December 31, 2013. What is the amount of inventory loss shown on the income statement under U.S. GAAP? A) $0. B) $3,000. C) $14,000. D) $10,000. E) $8,400. What is the amount of inventory loss shown on the income statement under U.S. GAAP?


A) $0.
B) $3,000.
C) $14,000.
D) $10,000.
E) $8,400.

F) C) and D)
G) B) and D)

Correct Answer

verifed

verified

Foreign companies whose stock is listed on a U.S. stock exchange and using foreign GAAP other than IFRS must file their annual report with the SEC on:


A) Form 8-A.
B) Form 10-A.
C) Form 16-K.
D) Form 20-F.
E) Form 20-K.

F) A) and E)
G) A) and D)

Correct Answer

verifed

verified

How did the early International Accounting Standards (IAS) obtain support from a sufficient number of board members?

Correct Answer

verifed

verified

They allowed at leas...

View Answer

Why does each country have its own unique set of financial reporting practices?

Correct Answer

verifed

verified

A survey identified five commonly accept...

View Answer

Which two EU directives have helped harmonize accounting standards?

Correct Answer

verifed

verified

The fourth and seventh directives have h...

View Answer

The following information pertains to inventory held by a company at December 31, 2013. The following information pertains to inventory held by a company at December 31, 2013. What is the amount of inventory loss shown on the income statement under IFRS? A) $1,000. B) $2,000. C) $4,000. D) $5,000. E) $6,000. What is the amount of inventory loss shown on the income statement under IFRS?


A) $1,000.
B) $2,000.
C) $4,000.
D) $5,000.
E) $6,000.

F) B) and D)
G) B) and E)

Correct Answer

verifed

verified

Which of the following statements is false regarding providers of financing?


A) There is less pressure to provide accounting information in those countries in which financing is primarily by banks.
B) In countries where capital stock is the primary source of financing, accounting emphasizes the income statement.
C) Disclosures are less extensive in those countries financed primarily by stock.
D) Bankers tend to focus more on solvency and stockholders focus more on profitability.
E) As companies become more dependent on financing by stock, more information is demanded.

F) A) and D)
G) A) and E)

Correct Answer

verifed

verified

Which topic was not covered by FASB under the short-term convergence project?


A) Inventory costs.
B) Asset exchanges.
C) Liability transfers.
D) Accounting changes.
E) Earnings-per-share.

F) A) and E)
G) B) and D)

Correct Answer

verifed

verified

A company sells a building to a bank in 2013 at a gain of $100,000 and immediately leases the building back for period of five years. The lease is accounted for as an operating lease. The building was originally purchased for $200,000 and currently had a book value of $50,000 at the date of the sale. Assume the seller of the building is a U.S. company that is preparing to convert from U.S. GAAP to IFRS. At December 31, 2014, with regard to the sale and leaseback accounting, what amount would reconcile stockholders' equity from U.S. GAAP to IFRS at December 31, 2014?


A) Increase $40,000.
B) Decrease $40,000.
C) Decrease $60,000.
D) Increase $60,000.
E) No amount would be necessary for reconciliation.

F) A) and E)
G) C) and D)

Correct Answer

verifed

verified

The following information pertains to inventory held by a company at December 31, 2013. The following information pertains to inventory held by a company at December 31, 2013. What amount of inventory should be reported under IFRS? A) $25,000 B) $21,000 C) $20,000 D) $4,000 E) $5,000 What amount of inventory should be reported under IFRS?


A) $25,000
B) $21,000
C) $20,000
D) $4,000
E) $5,000

F) C) and E)
G) A) and B)

Correct Answer

verifed

verified

Showing 41 - 60 of 60

Related Exams

Exam 1

The Equity Method of Accounting for Investments

119 Questions

Exam 2

Consolidation of Financial Information

107 Questions

Exam 3

Consolidations - Subsequent to the Date of Acquisition

122 Questions

Exam 4

Consolidated Financial Statements and Outside Ownership

116 Questions

Exam 5

Consolidated Financial Statements Intra-Entity Asset Transactions

127 Questions

Exam 6

Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues

115 Questions

Exam 7

Consolidated Financial Statements - Ownership Patterns and Income Taxes

115 Questions

Exam 8

Segment and Interim Reporting

116 Questions

Exam 9

Foreign Currency Transactions and Hedging Foreign Exchange Risk

93 Questions

Exam 10

Translation of Foreign Currency Financial Statements

97 Questions

Exam 12

Financial Reporting and the Securities and Exchange Commission

77 Questions

Exam 13

Accounting for Legal Reorganizations and Liquidations

83 Questions

Exam 14

Partnerships: Formation and Operation

88 Questions

Exam 15

Partnerships: Termination and Liquidation

73 Questions

Exam 16

Accounting for State and Local Governments

78 Questions

Exam 17

Accounting for State and Local Governments

49 Questions

Exam 18

Accounting and Reporting for Private Not-For-Profit Organizations

62 Questions

Exam 19

Accounting for Estates and Trusts

80 Questions

Show Answer